- The company will offer to purchase up to $100,000,000 of its outstanding common shares at a price between $22 and $25 per share
- Shareholders wishing to participate in the offer will be entitled to specify a selling price for the shares being tendered or agree to sell a specified number of shares at a price to be determined by auction tenders
- The purchase price will be the lowest price which enables the company to purchase the maximum number of shares not exceeding an aggregate of $100,000,000
- The offer will commence on June 30, 2022, and expire on August 4, 2022
- AutoCanada is a leading North American multi-location automobile dealership group
- AutoCanada Inc. (ACQ) is up 4.65 per cent on the day, trading at C$25.20 per share at 11:45 am ET
AutoCanada (ACQ) has announced its intention to commence a substantial issuer bid.
The company will offer to purchase up to $100,000,000 of its outstanding common shares at a price of not less than $22 and not more than $25 per share.
Shareholders wishing to participate in the offer will be entitled to specify the selling price of shares being tendered or purchase price tenders in which they will agree to sell a specified number of shares at a price determined by auction tenders.
The purchase price will be the lowest, enabling the company to purchase the maximum number of shares not exceeding an aggregate of $100,000,000based on valid auction tenders and purchase price tenders. Shares not taken up in connection with the offer, including shares deposited at prices above the purchase price, will be returned to shareholders.
As of June 27, 2022, there were 26,562,695 shares issued and outstanding. The offer will be for approximately 17.1 per cent of the total number of issued and outstanding shares if the purchase price is determined to be $22 or about 15.1 per cent of the total number of issued and outstanding shares if the purchase price is determined to be $25.
The offer will commence on June 30, 2022 and expire on August 4, 2022.
The Board of Directors believes that the offer is a prudent use of the company’s financial resources given the current market price of the shares and the company’s ongoing cash requirements. The board also believes the offer will allow shareholders to access liquidity that may not otherwise be available on the TSX.
The offer allows AutoCanada to return up to $100,000,000 of capital to shareholders who elect to tender while increasing the proportionate share ownership of shareholders who elect not to tender.
The offer will be funded with cash on hand and drawings under its senior syndicated credit facility.
The company has engaged Computershare Investor Services Inc. to act as depositary for the offer.
AutoCanada is a leading North American multi-location automobile dealership group currently operating 80 franchised dealerships, comprised of 28 brands, in eight provinces in Canada, as well as a group in Illinois, USA.
AutoCanada Inc. (ACQ) is up 4.65 per cent on the day, trading at C$25.20 per share at 11:45 am ET.
