Toronto, Ontario – Martinrea International Inc. (TSX: MRE) (“Martinrea”) announced today that the Toronto Stock Exchange (the “TSX”) has accepted a notice filed by Martinrea of its intention to make a Normal Course Issuer Bid (the “Bid”) to be transacted through the facilities of the TSX and/or alternative Canadian trading systems.
The notice provides that Martinrea may, during the 12‐month period commencing August 31, 2018 and ending August 30, 2019, 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 will be cancelled.
As of August 20, 2018, Martinrea has 86,969,584 Shares issued and outstanding. The average daily trading volume (“ADTV”) of the Shares on the TSX for the most recently completed six calendar months is 197,682. Pursuant to TSX policies, the maximum number of Shares that may be purchased in one day pursuant to the Bid will be 25 percent of ADTV, subject to certain prescribed exceptions representing approximately 49,420 Shares.
Martinrea believes that repurchasing its shares may be a good use of funds, as it reduces dilution from stock issuances, 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 if the repurchased Shares are cancelled.
Paradigm Capital Inc. will conduct the bid on behalf of Martinrea.