GUELPH, ON, Jan. 25, 2019
GUELPH, ON, Jan. 25, 2019 /CNW/ - Linamar Corporation ("Linamar" or the "Company") (TSX:LNR) today announced the Toronto Stock Exchange (the "TSX") has approved the Company's notice of intention to commence a Normal Course Issuer Bid (the "Bid").
"We are initiating this NCIB in recognition of what we believe is a significant level of under valuation of Linamar stock. We do not feel that the value of our business is being adequately reflected in our current share price" said Linamar CEO Linda Hasenfratz.
Under the Bid, the Company may repurchase on the open market (or as otherwise permitted), at its discretion during the period commencing on January 29, 2019 and ending on the earlier of January 28, 2020 and the completion of purchases under the Bid, up to 4,506,324 common shares of the Corporation (the "Common Shares"), representing approximately 10% of the "public float" of the Common Shares (within the meaning of the rules of the TSX), subject to the normal terms and limitations of such a bid.
Under the TSX rules, during the six months ended December 31, 2018, the average daily trading volume of the Common Shares on the TSX was 374,235 Common Shares and, accordingly, daily purchases on the TSX pursuant to the Bid will be limited to 93,558 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 Bid 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 (including through alternative trading systems in Canada), at prevailing market prices or as otherwise permitted. The Bid will be funded using existing cash resources, and any Common Shares repurchased by the Company under the Bid will be cancelled.
As of January 18, 2019, the Company had 65,357, 295 issued and outstanding Common Shares and a "public float" of 45,063,240 Common Shares.
The Company believes that the Bid is in the best interest of the Company and constitutes a desirable use of its funds.
About Linamar Corporation
Linamar (TSX:LNR) is a diversified global manufacturing company of highly engineered products powering vehicles, motion, work and lives. The Company is made up of 2 operating segments – the Transportation segment and the Industrial segment, which are further divided into 5 operating groups – Machining & Assembly, Light Metal Casting, Forging, Skyjack and Agriculture, all world leaders in the design, development and production of highly engineered products. The Company's Machining & Assembly, Light Metal Casting and Forging operating groups focus on precision metallic components, modules and systems for powertrain, driveline and body systems designed for global electrified and traditionally powered vehicle and industrial markets. The Company's Skyjack and MacDon companies are noted for their innovative, high quality mobile industrial and harvesting equipment, notably class-leading aerial work platforms, telehandlers, draper headers and self-propelled windrowers. Linamar has more than 28,700 employees in 60 manufacturing locations, 8 R&D centers and 25 sales offices in 17 countries in North and South America, Europe and Asia which generated sales of $6.5 billion in 2017. For more information about Linamar Corporation and its industry leading products and services, visit www.linamar.com or follow us on Twitter at @LinamarCorp.
January 25, 2019
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 Bid, 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 and other risks and uncertainties, as well as other information related to the Company, 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
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regarding this release please contact Linda Hasenfratz at (519) 836-7550.Copyright CNW Group 2019