TORONTO, Sept. 5 /CNW/ - Shoppers Drug Mart Corporation (TSX: SC) announced today that its Board of Directors has authorized the purchase of up to 5,400,000 of its common shares, representing approximately 2.5% of the 216,580,279 common shares currently outstanding, by way of normal course purchases on the Toronto Stock Exchange (the "TSX"). The Company's current normal course issuer bid program will terminate on September 7, 2007.
Subject to regulatory approval, it is anticipated that purchases may commence on September 10, 2007 and will terminate on September 9, 2008, or on such earlier date as the Company may complete its purchases pursuant to a Notice of Intention to be filed with the TSX. Purchases will be made by the Company in accordance with the requirements of the TSX and the price which the Company will pay for any such common shares will be the market price of any such common shares at the time of acquisition. Purchased common shares will be cancelled.
Commenting on the share repurchase program, George Halatsis, Executive Vice-President and CFO stated, "From time to time the Company expects to have cash or debt capacity in excess of its operating, financing and capital investment requirements. The renewal of our normal course issuer bid program provides the Company with a flexible tool to address this. Additionally, the Company believes that from time to time, the market price of its common shares could be such that their purchase may be an attractive and appropriate use of corporate funds in light of potential benefits to remaining shareholders. Accordingly, the renewal of this program provides the Company with an alternative means to distribute a portion of any excess cash to shareholders who elect to participate by selling their shares."
Shoppers Drug Mart Corporation is one of the most recognized and trusted names in Canadian retailing. The Company is the licensor of full-service retail drug stores operating under the name Shoppers Drug Mart (Pharmaprix in Quebec). With more than 1000 Shoppers Drug Mart and Pharmaprix stores operating in prime locations in each province and two territories, the Company is one of the most convenient retailers in Canada. The Company also owns and operates 60 Shoppers Home Health Care stores, making it the largest Canadian retailer of home health care products and services.
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