MONTREAL, March 16 /CNW Telbec/ - TransForce Inc. ("TransForce" or "the Company") (TSX: TFI - T), the leader in the Canadian transportation and logistics industry, today announced its intention to repurchase certain of its issued and outstanding common shares (the "Shares") pursuant to a normal course issuer bid (the "Bid"). The Bid has been approved by the Toronto Stock Exchange ("TSX") and shall commence on March 18, 2009 and end on March 17, 2010. TransForce's intention is to purchase for cancellation up to a maximum of 5,000,000 Shares, representing approximately 7.5% of the 67,135,714 Shares forming the unrestricted public-float of the Company as of March 10 2009, over a twelve-month period at the prevailing market price of the Shares at the time of such purchases. There are a total of 86,790,097 Shares issued and outstanding as of March 10, 2009. The actual number of Shares that may be purchased and the timing of any such purchases will be determined by TransForce. All purchases will be made through the facilities of the TSX in accordance with the requirements of the TSX.
The average daily trading volume of the Shares over the most recently completed six (6) calendar months was 261,253 Shares. Accordingly, the Company is entitled to purchase, on any trading day, up to 65,313 Shares.
In the opinion of the board of directors of the Company, the Shares have been trading in a price range which does not adequately reflect the value of the Shares based on TransForce's business and strong financial position and are driving an unusually high yield. As a result, TransForce believes that, at appropriate times, repurchases through the Bid can enhance shareholder value and represents an appropriate use of TransForce's financial resources.
To the knowledge of TransForce, no director or senior officer, including the CEO, no person acting jointly or in concert with TransForce and no person holding 10% or more of any Shares of TransForce currently intends to sell Shares during the course of the Bid. However, sales by such persons through the facilities of the TSX may occur if any such person makes a decision unrelated to the Bid. The benefits to any such person whose Shares are purchased would be the same as the benefits available to all other holders whose Shares are purchased under the Bid.
TransForce has not purchased any Shares pursuant to a normal course issuer bid during the preceding 12 months.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of the securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.
Profile
TransForce Inc. (www.transforce.ca) is the leader in Canada's transportation and logistics industry. Headquartered in Montreal, Quebec, TransForce creates value for shareholders through managing and investing in a growing network of wholly-owned, operating subsidiaries. TransForce provides a comprehensive and unique combination of capabilities, resources and geographical coverage in both domestic and trans-border markets. Its companies currently operate in four well-defined business segments:
- Less-Than-Truckload; - Package and Courier; - Specialized Services, which includes its ancillary transportation services such as logistics, warehousing & dedicated services, fleet management & personnel services; oilfield & oilsand services, and; waste management; - Truckload, which includes specialized truckload services.
TransForce Inc. shares are listed on the Toronto Stock Exchange under the symbol TFI.
Forward-Looking Statements
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of TransForce. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for TransForce's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.
The Financial Statements and Management's Discussion and Analysis can also be found on SEDAR at www.sedar.com and on the Company's website www.transforce.ca.
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