CALGARY, Feb. 14, 2013 /PRNewswire/ - WestJet Airlines Ltd. (TSX:WJA) announced today that the Toronto Stock Exchange ("TSX") has accepted its notice to make a normal course issuer bid to purchase outstanding common voting and variable voting shares (the "Shares") on the open market in accordance with the rules of the TSX.
As approved by the TSX, WestJet is now authorized to purchase up to 6,616,543 Shares under the normal course issuer bid, representing 5.0 per cent of WestJet's currently issued and outstanding Shares. As of January 31, 2013, there are 124,060,098 common voting shares and 8,270,767 variable voting shares issued and outstanding. On any trading day, WestJet will not purchase more than 84,090 Shares, except where such purchases are made in accordance with the block purchase exemptions under the TSX rules.
WestJet is authorized to make purchases during the period of February 19, 2013 to February 18, 2014 or until such earlier time as the bid is completed or terminated at the option of WestJet. Any Shares WestJet purchases under this bid will be purchased on the open market through the facilities of the TSX at the prevailing market price at the time of such transaction. Shares acquired under the bid will be cancelled. TD Securities Inc. will be appointed as the broker firm responsible for making purchases of Shares under the bid on behalf of WestJet.
During the period between February 10, 2012 and February 9, 2013, WestJet completed the purchase and cancellation of 6,914,318 Shares under its previous normal course issuer bid at a volume weighted average price of $16.20 per share.
WestJet believes that, from time to time, the market price of its Shares may not reflect their underlying value. At such times, the purchase of Shares for cancellation may be advantageous to shareholders by increasing the value of the remaining Shares. The purchase of Shares will also offset the dilutive effect of the issuance of Shares pursuant to WestJet's compensation plans.
Caution regarding forward-looking statements
This news release contains certain statements that may constitute forward-looking information within the meaning of applicable securities laws. This information includes, but is not limited to WestJet's intentions with respect to the normal course issuer bid and purchases thereunder and the effects of repurchases under the bid. This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a projection as reflected in the forward-looking information. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific. A variety of material factors - many of which are beyond WestJet's control - affect the operations, performance and results of WestJet and its business and could cause actual results to differ materially from the expectations expressed in any of this forward-looking information.
The forward-looking information in this news release is current to the date hereof, and is subject to change following such date. While WestJet may elect to do so, unless required by applicable law, it undertakes no obligation to update this information to reflect new information or circumstances at any particular time. Additional information about the risks and uncertainties about WestJet's business is provided in its disclosure materials, including its annual information form, filed with the securities regulatory authorities in Canada, available at www.sedar.com.
WestJet is Canada's most preferred airline, offering scheduled service to 85 destinations in North America, Central America and the Caribbean. Powered by an award-winning culture of care, WestJet pioneered low-cost flying in Canada. Recognized nationally as a top employer, WestJet now has more than 9,000 WestJetters across Canada. Operating a fleet of more than 100 Boeing Next-Generation 737 and Bombardier Q400 NextGen aircraft, WestJet strives to be one of the five most successful international airlines in the world.