Vancouver, B.C. – West Fraser Timber Co. Ltd. (“West Fraser” or the “Company”) announced today that it is proceeding with a renewal of its normal course issuer bid for up to 3,794,375 Common shares of the Company, representing approximately 5% of the issued and outstanding Common shares of the Company. On September 12, 2017, the Company had a total of 75,887,516 Common shares outstanding. The Company has received approval from the Toronto Stock Exchange (the “TSX”) to commence this bid on September 19, 2017. Pursuant to TSX policies, daily purchases will not exceed 69,247 Common shares, representing 25% of the average daily trading volume of 276,989 Common shares, except where such purchases are made in accordance with “block purchases” exemptions under applicable TSX policies.
The Company’s renewed normal course issuer bid will terminate on September 18, 2018 or earlier if the number of shares sought in the normal course issuer bid have been purchased. The Company reserves the right to terminate the bid earlier if it feels it is appropriate to do so.
The Company believes that the market price of its Common shares at certain times may be attractive and that the repurchase of Common shares at such market prices is an appropriate use of corporate funds.
All shares will be purchased either on the open market through the facilities of the TSX or through other Canadian market places, and payment for the shares will be in accordance with TSX policies. The price paid for the shares will be the market price at the time of purchase. No purchases will be made other than by means of open market transactions during the term of the normal course issuer bid. The shares purchased by the Company will be cancelled. Purchases may be suspended by the Company at any time.
The Company’s current normal course issuer bid for the purchase of up to 3,834,226 shares expires on September 18, 2017. As at the close of trading on September 12, 2017, the Company has purchased 391,853 of its issued and outstanding Common shares pursuant to such bid, at a weighted average price of $50.70 per Common share. All purchases were made on the open market through the facilities of the TSX.
West Fraser is a diversified wood products company producing lumber, LVL, MDF, plywood, pulp, newsprint, wood chips and energy with facilities in western Canada and the southern United States.
The Board of Directors of West Fraser has declared a quarterly dividend of $0.11 per share on the Common shares and Class B Common shares in the capital of the Company, payable on October 10, 2017 to shareholders of record on September 26, 2017. This represents an increase from the previous quarterly dividend of $0.04 per share.
Dividends are designated to be eligible dividends pursuant to subsection 89(14) of the Income Tax Act (Canada) and any applicable provincial legislation pertaining to eligible dividends.
West Fraser shares trade on the Toronto Stock Exchange under the symbol: “WFT”.
This News Release contains certain forward-looking statements about potential future developments, in particular those relating to the intent of West Fraser to purchase and cancel shares, the price of West Fraser shares in comparison to West Fraser’s assessment of their value, the number of shares that may be purchased and the terms of West Fraser’s normal course issuer bid. These are presented to provide reasonable guidance to the reader. Their accuracy and the actual timing of such purchases depend on and are subject to a number of assumptions, risks and uncertainties and other factors, including West Fraser’s results of operations and changes in general market conditions. Accordingly, readers should exercise caution in relying upon forward-looking statements and West Fraser undertakes no obligation to publicly revise them to reflect subsequent events or circumstances except as required by applicable securities laws.
For more information:
Chris Virostek, Vice-President, Finance and Chief Financial Officer
Rodger Hutchinson, Vice-President, Corporate Controller and Investor Relations