Definity Financial Corporation has received approval from the Toronto Stock Exchange (TSX) to initiate a normal course issuer bid (NCIB).
From May 31, 2024, until May 30, 2025, Definity may buy back up to 3,476,781 of its common shares, which is 3% of the shares outstanding. The repurchase will occur on the TSX through alternative trading systems in Canada or other allowable methods.
As of May 17, Definity had 115,892,700 common shares in circulation. Based on an average daily trading volume of 102,869 shares from Nov. 1, 2023, to April 30, 2024, the daily limit for purchases will be 25,717 shares, except for block purchases and acquisitions from the Healthcare of Ontario Pension Plan Trust Fund (HOOPP).
The timing of the purchases will depend on market conditions, share price, and other factors. Definity retains the right to pause or stop the NCIB at any time. All repurchased shares will be cancelled. Definity views the NCIB as a flexible strategy to return capital to shareholders, aligning with its overall capital management plan.
Definity has signed an automatic purchase plan agreement with an independent designated broker to facilitate share purchases when regulatory restrictions or self-imposed blackout periods would typically prevent such actions. The agreement, effective on May 31, has been approved by the TSX.
Additionally, Definity can buy shares from HOOPP under a TSX exemption, ensuring HOOPP’s ownership stays at or below 19.90% of the outstanding shares. The number of shares that can be repurchased through the NCIB will be adjusted by the number of shares bought from HOOPP.
Purchases from HOOPP will occur during the TSX’s Special Trading Session, as outlined in an automatic disposition plan agreement involving Definity’s broker, Definity, and HOOPP.
According to Definity, as of March 31, 2024, it had more than $2.9 billion in equity attributable to common shareholders.
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