TORONTO, Sept. 5, 2013 /CNW/ - CIBC (TSX: CM) (NYSE: CM) announced today that the Toronto Stock Exchange (TSX) has accepted notice of CIBC's intention to make a normal course issuer bid. On August 29, 2013, CIBC announced its intention to purchase for cancellation from time to time up to 8 million common shares, representing approximately 2% of CIBC's 399,992,256 issued and outstanding common shares as of August 26, 2013. The average daily trading volume for the six months ended August 30, 2013 was 1,250,602 common shares per day.
CIBC's purchase of common shares under a normal course issuer bid is consistent with the bank's priority of maintaining balance sheet strength, while generating shareholder value through a balanced capital deployment strategy.
Purchases under the bid could commence as early as September 9, 2013 through the TSX and may also be made through alternative Canadian trading systems and the New York Stock Exchange. The bid will be completed upon the earlier of (i) CIBC purchasing 8 million common shares, (ii) CIBC providing a notice of termination, or (iii) September 8, 2014. CIBC World Markets Inc. has been retained to act as designated broker to repurchase CIBC shares pursuant to the bid, including under automatic share purchase plans established periodically. Each plan would define a prearranged set of criteria which CIBC would not be entitled to vary or suspend. The price paid for the common shares will be the market price at the time of the purchase. The common shares purchased under the normal course issuer bid will be cancelled.
In addition, CIBC Mellon Trust Company, a non-independent trustee for the purposes of the rules of the TSX, currently acts as trustee on behalf of CIBC shareholders to purchase common shares as part of the CIBC Shareholder Investment Plan. These common shares are purchased and held on behalf of shareholders and are not cancelled.