AutoCanada Inc. plans to purchase again as much as $100 million in shares from traders, because the publicly traded dealership group weighs its present share value in opposition to its property and outlook.
The Edmonton-based firm, which owns 80 franchised dealerships in Canada and the United States, introduced the buyback plan June 28.
AutoCanada shareholders, by means of what is called a modified Dutch public sale, will have the ability to tender shares for buyback for between $22 and $25. The $100-million restrict on the issuer bid represents about 15.5 per cent of the worth of the dealership group’s whole excellent shares on the firm’s most up-to-date closing value.
Company shares closed at $24.08 June 27, not far off their 52-week low of $22.41 recorded earlier this month. Its shares traded as excessive as $59.26 final August and ended 2021 at $42.70.
AutoCanada’s administration and board mentioned the buyback is a “prudent use of the company’s financial resources given the company’s business profile and assets, the current market price of the shares and the company’s ongoing cash requirements.”
Investors opting to tender their shares, the corporate mentioned, can have entry to liquidity that won’t in any other case be out there on the Toronto Stock Exchange. Those selecting to carry onto their shares will come out of the buyback with every share representing a bigger proportional stake within the dealership group.
AutoCanada mentioned it plans to fund the buyback with money on-hand and drawings from its senior syndicated credit score facility.
Shareholders will have the ability to tender shares between June 30 and Aug. 4.
Source: canada.autonews.com
