TORONTO, May 8, 2013 /CNW/ - Intact Financial Corporation (TSX: IFC ) announced today that a normal course issuer bid ("NCIB") authorized by its Board of Directors to purchase for cancellation during the next 12 months up to 6,666,683 common shares, representing approximately 5% of its issued and outstanding common shares, has been approved by the Toronto Stock Exchange ("TSX").
At the close of business on May 1, 2013, there were 133,333,665 shares issued and outstanding. The actual number of common shares which will be purchased for cancellation and the timing of any such purchases will be determined by the company. The Company believes that the NCIB is a flexible way of distributing a portion of its excess capital to shareholders who choose to participate in the program.
Purchases under the NCIB will be made by means of open market transactions through the facilities of the TSX as well as through other designated exchanges and published markets in Canada. The exchange's rules permit Intact to purchase daily a maximum of 65,829 common shares through TSX facilities, subject to any block purchases made in accordance with TSX rules, which is 25% of the average daily trading volume of 263,316 common shares for the six months prior to May 1, 2013.
Intact relies on an automatic securities purchase plan during the NCIB. The automatic securities purchase plan allows for purchases by Intact during certain pre-determined black-out periods, subject to certain parameters. Outside of these pre-determined black-out periods, shares will be purchased in accordance with management's discretion. Purchases for cancellation may also be made through such other means as the TSX or a securities regulatory authority may permit, including by way of pre-arranged crosses or by way of private agreements outside the facilities of the TSX pursuant to exemption orders. The price to be paid by Intact for any shares will be the market price at the time of acquisition or such other price as the TSX and/or a securities regulatory authority may permit. Purchases for cancellation made by way of private agreements under an issuer bid exemption order issued by a securities regulatory authority will be at a discount to the prevailing market price as provided in the exemption order.
Purchases of common shares may commence on or about May 13, 2013 and will expire on the earlier of May 12, 2014, or the date on which the company has either acquired the maximum number of common shares allowable or otherwise decided not to make any further repurchases.
About Intact Financial Corporation
Intact Financial Corporation (www.intactfc.com) is the largest provider of property and casualty insurance in Canada. Intact offers home, auto and business insurance through Intact Insurance, belairdirect, Grey Power, BrokerLink and Jevco.
Forward Looking Statements
This document may contain forward looking statements that involve risks and uncertainties. The company's actual results could differ materially from these forward looking statements as a result of various factors, including those discussed in the company's most recently filed Annual Information Form and annual Management's Discussion & Analysis. Please read the cautionary note at the end of the MD&A.
SOURCE INTACT FINANCIAL CORPORATION