TORONTO, Aug. 2, 2013 /PRNewswire/ - Celestica Inc. (NYSE, TSX: CLS), a global leader in the delivery of end-to-end product lifecycle solutions, today announced it has received approval from the Toronto Stock Exchange (the TSX) to launch its previously announced Normal Course Issuer Bid (the Bid).
Under the Bid, the Company may repurchase on the open market, at its discretion during the period commencing on August 7, 2013 and ending on the earlier of August 6, 2014 and the completion of purchases under the Bid, up to 9,842,021 subordinate voting shares, representing approximately 5.95% of the Company's outstanding subordinate voting shares (5.34% of the subordinate voting shares and multiple voting shares) and approximately 10% of the "public float" of the subordinate voting shares (within the meaning of the rules of the TSX), subject to the normal terms and limitations of such bids. Under the TSX rules, daily purchases will be limited to 88,590 subordinate voting shares, other than block purchase exceptions. The actual number of subordinate voting shares which may be purchased pursuant to the Bid and the timing of any such purchases will be determined by the management of the Company, subject to applicable law and the rules of the TSX. In accordance with the TSX rules, the maximum number of subordinate voting shares which may be repurchased for cancellation under the Bid will be reduced by the number of subordinate voting shares purchased for security-based compensation plans.
Purchases are expected to be made through the facilities of the New York Stock Exchange and the Toronto Stock Exchange, or such other permitted means (including through other published markets), at prevailing market prices or as otherwise permitted. The share repurchase program will be funded using existing cash resources and any subordinate voting shares repurchased by the Company under the Bid will be cancelled.
As of July 22, 2013, the Company had 165,320,977 issued and outstanding subordinate voting shares and a "public float" (within the meaning of the rules of the TSX) of 98,420,215 subordinate voting shares.The Company believes that the purchases are in the best interest of the Company and constitute a desirable use of its funds.