Linamar Announces TSX Approval of Normal Course Issuer Bid
GUELPH, ON, Nov. 26, 2021 /CNW/ - Linamar Corporation ("Linamar" or the "Company") (TSX: LNR) announces that the Toronto Stock Exchange ("TSX") has accepted the Company's notice of intention to commence a Normal Course Issuer Bid (the "NCIB"). The Company believes that the NCIB is in the best interest of the Company, will increase shareholder value, and constitutes a desirable use of the Company's available funds.
Linda Hasenfratz, Chief Executive Officer of Linamar, stated: "This NCIB will help support our share price in these volatile times. Our outlook remains positive despite market challenges and we want to ensure that our share price reflects the value we are creating at Linamar."
Under the NCIB, the Company may repurchase on the open market or such other means as a securities regulatory authority in Canada may permit, at its discretion during the period commencing on November 30, 2021 and ending on the earlier of November 29, 2022 and the completion of the maximum purchases permitted under the NCIB, up to 4,421,507 outstanding common shares of the Company (the "Common Shares"), representing approximately 10% of the Company's "public float" (within the meaning of the rules of the TSX), subject to the normal terms and limitations of such an NCIB. As of November 22, 2021, the Company had 65,450,697 issued and outstanding Common Shares.
Under the TSX rules, during the six months ended October 31, 2021, the average daily trading volume of the Common Shares on the TSX was 143,379 Common Shares and, accordingly, daily purchases on the TSX pursuant to the NCIB will be limited to 35,844 Common Shares, other than purchases made pursuant to the block purchase exception. The actual number of Common Shares which may be purchased pursuant to the NCIB and the timing of any such purchases will be determined by the management of the Company, subject to applicable law and the rules of the TSX.
Purchases are expected to be made through the facilities of the TSX, or such other permitted means as a securities regulatory authority in Canada may permit (including through alternative trading systems in Canada), at prevailing market prices or as otherwise permitted. The NCIB will be funded using existing cash resources, and any Common Shares purchased by the Company under the NCIB will be cancelled.
The Company has not repurchased any of its outstanding Common Share under a normal course issuer bid in the past 12 months. Pursuant to a previous notice of intention to conduct a normal course issuer bid, the Company sought and received approval from the TSX to purchase up to 4,396,427 Common Shares for the period of March 20, 2020 to March 19, 2021.
About Linamar Corporation
Linamar Corporation (TSX:LNR) is an advanced manufacturing company where the intersection of leading-edge technology and deep manufacturing expertise is creating solutions that power vehicles, motion, work and lives for the future. The Company is made up of two operating segments – the Industrial segment and the Mobility segment, both global leaders in manufacturing solutions and world-class developers of highly engineered products. The Industrial segment is comprised of Skyjack and MacDon. Skyjack manufactures scissor, boom and telehandler lifts for the aerial work platform industry. MacDon manufactures combine draper headers and self-propelled windrowers for the agricultural harvesting industry. The Mobility segment is subdivided into three regional groups: North America, Europe and Asia Pacific. Within the Mobility segment, the regional groups are vertically integrated operations combining expertise in light metal casting, forging, machining and assembly for both the global electrified and traditionally powered vehicle markets. The Mobility segment products are focused on both components and systems for new energy powertrains, body and chassis, driveline, engine and transmission systems of these vehicles. In addition to the recently formed eLIN Product Solutions Group that focuses on Electrification, McLaren Engineering provides design, development, and testing services for the Mobility segment. Linamar has 26,000 employees in 60 manufacturing locations, 12 R&D centres and 25 sales offices in 17 countries in North and South America, Europe and Asia which generated sales of $7.4 billion in 2019. For more information about Linamar Corporation and its industry leading products and services, visit www.linamar.com or follow us on Twitter at @LinamarCorp.
This release includes forward-looking statements regarding Linamar. Such statements are based on the current expectations and views of future events of the Company's business. In some cases, the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The forward-looking events and circumstances discussed in this release, including, but not limited to future purchases of Common Shares under the NCIB and any potential share price support, may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting Linamar, including risks regarding economic factors and many other factors beyond the control of the Company. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks include, but are not limited to, the market price of the Common Shares being too high to ensure that purchases benefit the Company and its shareholders, and other risks and uncertainties (as well as other information related to the Company) that are discussed in the Company's various public filings available on SEDAR and can be accessed at www.sedar.com. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
SOURCE Linamar Corporation
