AutoCanada Inc. announces an Equity Buyback for CAD 100 million worth of its shares.
June 28, 2022 at 07:44 am EDT
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AutoCanada Inc. (TSX:ACQ) announces a share repurchase program. Under the substantial issuer bid, the company will repurchase up to $100 million worth of its outstanding shares. The shares will be tendered at a price of not less than $22 per share and not more than $25 per share. The company plans to fund the offer from available cash on hand and drawings under its senior syndicated credit facility. If the aggregate cost to purchase the tendered shares exceeds $100 million, the company will accept such shares on a pro-rata basis after giving effect to ôodd lotö tenders, which will not be subject to pro-ration. The bid will expire on August 4, 2022, unless extended or withdrawn. As of June 27, 2022, the company had 26,562,695 shares in issue.
On August 2, 2022, the company announced that it has adjusted the price range at which shares will be purchased in the offer to a price of not less than $25 per share and not more than $28 per share.
AutoCanada Inc. is a Canada-based multi-location franchised automobile dealership company. The Company offers a diversified range of automotive products and services, including new vehicles, used vehicles, vehicle leasing, vehicle parts, vehicle maintenance and collision repair services, extended service contracts, vehicle protection products, after-market products and auction services. The Company also arranges financing and insurance for vehicles purchased by its customers through third-party finance and insurance sources. Its segments include Canadian Operations and U.S. Operations. It operates 83 franchised dealerships, comprising of 28 brands, in eight provinces in Canada as well as a group in Illinois, United States of America. It sells Chrysler, Dodge, Jeep, Ram, FIAT, Alfa Romeo, Chevrolet, GMC, Buick, Cadillac, Ford, Infiniti, Nissan, Hyundai, Subaru, Audi, Volkswagen, Kia, Mazda, Mercedes-Benz, BMW, MINI, Volvo, Toyota, Lincoln, Acura, and Honda brands.