AutoCanada Inc. plans to purchase again as much as $100 million in shares from buyers, because the publicly traded dealership group weighs its present share worth in opposition to its property and outlook.
The Edmonton-based firm, which owns 80 franchised dealerships in Canada and the USA, introduced the buyback plan June 28.
AutoCanada shareholders, by what is named a modified Dutch public sale, will have the ability to tender shares for buyback for between $22 and $25. The $100-million restrict on the issuer bid represents about 15.5 per cent of the worth of the dealership group’s whole excellent shares on the firm’s most up-to-date closing worth.
Firm shares closed at $24.08 June 27, not far off their 52-week low of $22.41 recorded earlier this month. Its shares traded as excessive as $59.26 final August and ended 2021 at $42.70.
AutoCanada’s administration and board mentioned the buyback is a “prudent use of the corporate’s monetary sources given the corporate’s enterprise profile and property, the present market worth of the shares and the corporate’s ongoing money necessities.”
Traders opting to tender their shares, the corporate mentioned, may have entry to liquidity that will not in any other case be accessible on the Toronto Inventory Alternate. These selecting to carry onto their shares will come out of the buyback with every share representing a bigger proportional stake within the dealership group.
AutoCanada mentioned it plans to fund the buyback with money on-hand and drawings from its senior syndicated credit score facility.
Shareholders will have the ability to tender shares between June 30 and Aug. 4.