TORONTO, Aug. 27, 2019 (GLOBE NEWSWIRE) -- 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, 2019 and ending August 30, 2020, purchase up to 8,000,000 common shares in the capital of Martinrea (“Shares”) in total, being approximately 10 percent of its public float. 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. All purchases will be subject to Martinrea’s normal trading black-outs. Any purchases made during a blackout period will only be made pursuant to a pre-defined automatic securities purchase plan that Martinrea may enter into with its designated broker.
As of August 27, 2019, Martinrea has 82,786,105 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 201,988. 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 50,497 Shares.
Martinrea believes that repurchasing its shares over the next year 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.
During the past 12 months, Martinrea sought approval to purchase up to 4,348,479 shares for cancellation under a normal course issuer bid for the period August 31, 2018 to August 30, 2019 (the “Prior Bid”). Martinrea purchased 4,348,479 shares for cancellation under the Prior Bid at a weighted average price per security of $11.9236 per share. The purchases were made through the TSX.
About Martinrea
Martinrea is a diversified and global automotive supplier engaged in the design, development and manufacturing of highly engineered, value-added Lightweight Structures and Propulsion Systems. Martinrea currently employs approximately 15,000 skilled and motivated people in 47 operating divisions including Canada, the United States, Mexico, Brazil, Germany, Slovakia, Spain and China.
Martinrea’s vision is making lives better by being the best supplier we can be in the products we make and the services we provide. The Company’s mission is to make people’s lives better by: delivering outstanding quality products and services to our customers; providing meaningful opportunity, job satisfaction, and job security for our people; providing superior long-term investment returns to our stakeholders; and being positive contributors to our communities. For more information, visit www.martinrea.com.
Forward-Looking Statements
This press release contains forward-looking statements that involve a number of risks and uncertainties, including in respect of the market price of the Shares, the number of Shares to be purchased under the normal course issuer bid and the benefit of the normal course issuer bid to existing shareholders. Although Martinrea believes these statements to be reasonable, the assumptions upon which they are based may prove to be incorrect. Actual results and the timing of events may differ materially from those anticipated in the forward-looking information as a result of various factors, including those described in "Risk Factors" which are described in the Company's annual information form dated February 28, 2019 for the fiscal year ended December 31, 2018. Martinrea cautions that the list of risk factors and uncertainties is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. Furthermore, the forward-looking statements contained in this press release are made as at the date of this press release and Martinrea does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
For further information, please contact:
Fred Di Tosto, Chief Financial Officer
Martinrea International Inc.
3210 Langstaff Road
Vaughan, Ontario L4K 5B2
Tel: 416.749.0314
Fax: 289.982.3001