Cascades to buy back shares
March 13, 2009 By Pulp & Paper Canada
The Toronto Stock Exchange has accepted Cascades Inc.’s notice of intention to begin a normal course issuer bid (NC…
The Toronto Stock Exchange has accepted Cascades Inc.’s notice of intention to begin a normal course issuer bid (NCIB) regarding its common shares, starting today, March 13. Purchases pursuant to the NCIB – which allows the company to buy back its own outstanding shares from the market so it can cancel them – will end by March 12, 2010.
The notice will allow Cascades to purchase up to just over 4.9 million of its common shares, which represent about 5% of the company’s 98.3 million issued and outstanding common shares as of March 6. Over the past 12 months, Cascades bought 828,800 common shares at an average price of $4.13 per share.
Cascades’ purchases will be made according to the TSX’s requirements.
The average daily trading volume (ADTV) of Cascades’ common shares on the TSX over the past six months was 197,273. Consequently, Cascades will be allowed to buy up to 49,318 common shares, equal to 25% of the ADTV.
According to a Cascades press release, the company believes the shares it will buy may be undervalued in the market at times, and therefore represent the opportunity to increase shareholder value.
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