TORONTO, May 29 /CNW/ - FirstService Corporation (TSX: FSV; Nasdaq: FSRV) ("FirstService") announced today that the Toronto Stock Exchange (the "TSX") has accepted a notice filed by FirstService of its intention to make a normal course issuer bid (the "NCIB"). A similar notice has also been filed with the Ontario Securities Commission.
The notices provide that FirstService may, during the 12 month period commencing June 7, 2007 and ending June 6, 2008, purchase through the facilities of the TSX or Nasdaq National Market ("Nasdaq"), for cancellation, up to 2,600,000 subordinate voting shares in total, being approximately 10% of the "public float". Purchases of subordinate voting shares through Nasdaq will be made in the normal course and will not, during the 12 month period ending June 6, 2008 exceed, in the aggregate, 5% of the issued and outstanding subordinate voting shares of FirstService as at the commencement of the period. The price which FirstService will pay for any such shares will be the market price at the time of acquisition. The actual number of subordinate voting shares which may be purchased pursuant to the NCIB and the timing of any such purchases will be determined by senior management of FirstService.
As of May 28, 2007 there were 28,527,544 subordinate voting shares and 1,325,694 multiple voting shares of FirstService outstanding.
FirstService believes that its subordinate voting shares may from time to time trade in a price range that does not adequately reflect the value of such shares in relation to the business of FirstService and its future business prospects. As a result, depending upon future price movements and other factors, FirstService believes that its outstanding subordinate voting shares may represent an attractive investment to FirstService. Furthermore, the purchases are expected to benefit all persons who continue to hold subordinate voting shares by increasing their equity interest in FirstService.
During the preceding twelve month period ended May 28, 2007, FirstService purchased for cancellation an aggregate of 819,100 subordinate voting shares at an average price of US$24.44 per share through the facilities of the TSX and Nasdaq.
ABOUT FIRSTSERVICE
FirstService is a leader in the rapidly growing property services sector, providing services in the following areas: commercial real estate; residential property management; property improvement; and integrated security services. Market-leading brands include Colliers International in commercial real estate; The Continental Group, The Wentworth Group and The MERIT Companies in residential property management; Consumer brands California Closets, Paul Davis Restoration, Pillar to Post Home Inspections, Certa Pro Painters and Handyman Connection, in property improvement; and Intercon Security and Security Services & Technologies in integrated security.
FirstService is a diversified property services company with more than US $1.4 billion in annualized revenues and more than 16,000 employees worldwide. More information about FirstService is available at www.firstservice.com.
FORWARD-LOOKING STATEMENTS
Certain statements included in this release constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of FirstService, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions, which will, among other things, impact demand for the FirstService's services, service industry conditions and capacity; the ability of FirstService to implement its business strategy, including FirstService's ability to acquire suitable acquisition candidates on acceptable terms and successfully integrate newly acquired businesses with its existing businesses; changes in or the failure to comply with government regulations (especially safety and environmental laws and regulations); and other factors which are described in FirstService's filings with the U.S. Securities and Exchange Commission and the Canadian regulatory authorities.