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Loblaw Companies Limited Amends Normal Course Issuer Bid to allow George Weston Limited to Participate
Loblaw Companies Limited Amends Normal Course Issuer Bid to allow George Weston Limited to...
About this update from Loblaw Companies Limited
[{"type":"text","content":"\n\n\n\nLoblaw Companies Limited Amends Normal Course Issuer Bid to allow George Weston Limited to Participate\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nBRAMPTON, ON, Feb. 25, 2020\n\n\n\nBRAMPTON, ON, Feb. 25, 2020 /CNW/ - (TSX: L; TSX: WN) – Loblaw Companies Limited (Loblaw) and George Weston Limited (GWL) jointly announce today that the Toronto Stock Exchange (TSX) has accepted an amendment to Loblaw's normal course issuer bid (NCIB). The amendment will permit GWL to sell common shares (Common Shares) of Loblaw in connection with Loblaw's NCIB in order for GWL to maintain its proportionate interest in Loblaw. GWL is the majority owner of Loblaw and holds approximately 52.2% of the issued and outstanding Common Shares.\n\"Following the acquisition of Shoppers Drug Mart in 2014, George Weston Limited's ownership interest was reduced to 46% of the issued and outstanding shares of Loblaw,\" said Galen G. Weston, Chairman and Chief Executive Officer of George Weston Limited. \"At that time, we set a target to return to a majority ownership position in Loblaw, which we have achieved. The current plan is that we will accumulate approximately $2 billion of cash through participation in the Loblaw NCIB and cash generated from our other businesses. GWL is committed to its control position in Loblaw and stands by Loblaw's strategy.\"\nThe anticipated accumulation represents an incremental $1.3 billion to GWL's current cash position. The proceeds will provide GWL the opportunity to deploy capital across its portfolio of companies in retail, real estate and consumer goods to drive growth. GWL's participation assumes Loblaw will continue to deploy capital to its share buyback program and is subject to applicable regulatory approvals. \nLoblaw's NCIB provides that Loblaw may, during the 12-month period from May 1, 2019 (Effective Date) to April 30, 2020, purchase up to 18,455,884 Common Shares, representing approximately 5% of the issued and outstanding Common Shares as at the Effective Date, by way of the NCIB on the TSX or t...