Canadian retailer Loblaw said it may buy back up to 5% of its shares on the open market through a normal course issuer bid.
The company said it has authorised the repurchase of up to over 13.7m of its outstanding common shares, from tomorrow (8 April). It will terminate no later than 7 April 2010.
Purchases will be made in open market transactions on the Toronto Stock Exchange. In addition, Loblaw may enter into forward purchase or swap contracts, which may be settled by physical settlement, cash settlement or a combination of the two.
The forward price will be based on market price, dividend yield and market interest rates.
Loblaw said it believes that the market price of its common shares could be such
that their purchase may be an “attractive and appropriate” use of corporate funds in light of potential benefits to remaining shareholders.
