SNC-LAVALIN RENEWS ITS NORMAL COURSE ISSUER BID (2011)
The Board of the Corporation believes that the purchase of its shares makes appropriate and desirable use of its available cash. As a general practice, the Corporation repurchases its Common Shares mainly to offset the dilutive effect of stock issuance under its stock option programs. Therefore, the Corporation believes that the offer is in the best interest of SNC-Lavalin Group Inc. and its shareholders.
These purchases are to be made through the facilities of the Toronto Stock Exchange and/or alternative Canadian trading platforms, in accordance with the Toronto Stock Exchange’s policy on normal course issuer bids. The price the Corporation will pay for any Common Shares will be the market price at the time of acquisition, plus brokerage fees. Purchases may commence on June 2, 2011 and will terminate no later than June 1, 2012. Certain directors and senior officers of the Corporation may sell securities of the Corporation during the course of the normal course issuer bid. During the period that the Normal Course Issuer Bid is outstanding, the Corporation does not intend to make purchases of its Common Shares other than by means of open market transactions or such other means as may be permitted by the Toronto Stock Exchange and securities regulatory authorities as applicable, including block purchases of Common Shares.
The average daily trading volume of the Corporation’s Common Shares through the facilities of the Toronto Stock Exchange over the last six completed calendar months was 265,349 (“ADTV”). Accordingly, under the Toronto Stock Exchange Rules and policies, the Corporation is entitled on any trading day to purchase up to 25% of the ADTV, which totals 66,337 Common Shares, for the next 12-month period of the Normal Course Issuer Bid. In excess of the daily 66,337 repurchase limit, the Corporation may also purchase, once a week, a block of Common Shares not owned by any insiders, which may exceed such daily limit, in accordance with the Toronto Stock Exchange Rules.
During the period from June 2, 2010 to May 18, 2011 inclusively, the Corporation purchased 1,107,500 of its outstanding Common Shares, at a weighted average price of $56.18.
SNC-Lavalin (TSX: SNC) is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure, and in the provision of operations and maintenance services. SNC-Lavalin has offices across Canada and in 35 other countries around the world, and is currently working in some 100 countries. In business since 1911, the Company celebrates its 100th anniversary in 2011.
- 30 -
Media ContactLeslie Quinton
Senior Vice-President, Global Corporate Communications
SNC-Lavalin Group Inc.
Vice-President, Investor Relations
SNC-Lavalin Group Inc.