Toronto, Ontario – Martinrea International Inc. (TSX: MRE) (“Martinrea” or the “Company”) announced today that the Company has entered into an automatic share repurchase plan (“ASRP”) under its current Normal Course Issuer Bid (“NCIB”). The NCIB commenced on August 31, 2018. The ASRP will be effective as of December 19, 2018. The ASRP will allow the Company, through its broker (Paradigm Capital Inc.), to purchase securities under the NCIB in Company blackout periods, within the trading parameters provided by the issuer under the ASRP.
Under the Company’s ASRP, its broker may repurchase shares under the NCIB when the Company would ordinarily not be permitted due to regulatory restrictions or blackout periods.
As previously disclosed, the NCIB authorizes Martinrea, during the 12-month period commencing August 31, 2018 and ending August 30, 2019, to purchase up to 4,348,479 common shares in the capital of Martinrea (“Shares”) in total, being approximately 5 percent of the total number of 86,969,584 Shares (as at August 20, 2018). The price at which Martinrea will pay for any such Shares will be the prevailing market price at the time of acquisition. The actual number of Shares which may be purchased pursuant to the Bid will be determined by Martinrea and any shares purchased pursuant to the Bid, including under the ASRP, will be cancelled. As at the close of business on December 20, 2018, since August 31, 2018
Martinrea has repurchased 2,002,480 shares, returning approximately $24 million to shareholders. Martinrea believes that repurchasing its shares may be a good use of funds, as it distributes cash to shareholders and reflects its view that current share prices do not adequately reflect their value in relation to its business prospects. Furthermore, the purchases are expected to benefit all persons who continue to hold Shares by increasing their equity interest in Martinrea as the repurchased Shares are cancelled.