SNC-Lavalin Group Inc. (TSX:SNC) announces today that its Board of Directors has filed a notice to renew, for a 12-month period, its normal course issuer bid, which will expire on June 4, 2016. In the notice, SNC-Lavalin Group Inc. (“the Company”) states that a maximum of 3,000,000 Common Shares, representing approximately 2% of the issued and outstanding Common Shares as of May 18, 2016, may be purchased for cancellation. As of May 18, 2016, the Company had 150,030,894 Common Shares issued and outstanding, 131,239,572 of which made up the public float. Under current circumstances, the Company believes that the purchase of Common Shares is an effective use of its funds and in the best interest of the Company and its shareholders. The Company may make purchases to offset dilution arising from the issuance of Common Shares under security-based compensation arrangements of the Company or for other corporate purposes.
The timing and amount of purchases under the normal course issuer bid are subject to regulatory approval and to management discretion based on factors such as market conditions. These purchases are to be made through the facilities of the Toronto Stock Exchange and/or alternative trading systems, in accordance with the Toronto Stock Exchange’s policy on normal course issuer bids. The Company may purchase its Common Shares using an automatic share repurchase plan which was put in place on May 30, 2016 with RBC Dominion Securities Inc., in accordance with the relevant sections of the TSX Company Manual and applicable securities laws. The price the Company will pay for any Common Shares will be the market price at the time of acquisition, plus brokerage fees. Purchases may commence on June 6, 2016 and will terminate no later than June 5, 2017. Certain directors and senior officers of the Company may sell securities of the Company during the course of the normal course issuer bid.
During the period that the normal course issuer bid is outstanding, the Company does not intend to make purchases of its Common Shares other than by means of open market transactions or such other means as may be permitted by the Toronto Stock Exchange and securities regulatory authorities from time to time and as applicable, including block purchases of Common Shares.
The average daily trading volume of the Company’s Common Shares through the facilities of the Toronto Stock Exchange over the last six completed calendar months was 369,268 (“ADTV”). Accordingly, under the Toronto Stock Exchange Rules and policies, the Company is entitled on any trading day to purchase up to 25% of the ADTV, which totals 92,317 Common Shares, for the next 12-month period of the normal course issuer bid. In excess of the daily 92,317 repurchase limit, the Company may also purchase, once a week, a block of Common Shares not owned by any insiders, which may exceed such daily limit, in accordance with the Toronto Stock Exchange Rules.
During the period from June 5, 2015 to May 18, 2016 inclusively, the Company purchased 1,465,600 of its outstanding Common Shares at a weighted average price of $43.78 per Common Share.
Founded in 1911, SNC-Lavalin is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure. From offices in over 50 countries, SNC-Lavalin’s employees are proud to build what matters. Our teams provide engineering, procurement, construction, completions and commissioning services together with a range of sustaining capital services to clients in four industry sectors, oil and gas, mining and metallurgy, infrastructure and power. SNC-Lavalin can also combine these services with its financing and operations and maintenance capabilities to provide complete end-to-end project solutions. www.snclavalin.com
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