CALGARY,
AB, March 8, 2024 /CNW/ - ATCO Ltd.
(TSX: ACO.X) (TSX: ACO.Y)
The Toronto Stock Exchange (the "Exchange") has accepted ATCO
Ltd.'s (the "Company") Notice of Intention to make a Normal Course
Issuer Bid (the "Notice") pursuant to which the Company intends to
make a Normal Course Issuer Bid ("NCIB") for certain of its
outstanding Class I Non-Voting Shares ("Class I Shares") on the
terms set forth in the Notice. The Company believes that, from time
to time, the market price of its Class I Shares may not fully
reflect the value of its business, and that purchasing its own
Class I Shares represents an attractive investment opportunity and
desirable use of available funds. The purchase of Class I Shares,
at appropriate prices, will also minimize any dilution resulting
from the exercise of stock options.
On February 29, 2024, 99,733,891
Class I Shares were issued and outstanding. Under the terms of the
Notice and the rules of the Exchange, the Company may acquire up to
1,994,677 Class I Shares (being 2 per cent of the Class I Shares
issued and outstanding as at February 29,
2024, excluding any Class I Shares held by or on behalf of
the Company on such date), during the period commencing on
March 13, 2024 and ending on
March 12, 2025 or such earlier date
on which the Company completes its purchases of Class I Shares
under the NCIB or terminates the NCIB at its option.
The aggregate number of Class I Shares that the Company may
purchase under the NCIB during any trading day is subject to a
maximum daily purchase limit of 48,392 Class I Shares (being 25 per
cent of the average daily trading volume for the six calendar
months preceding the date of the acceptance of the Notice, which
was equal to 193,568 Class I Shares). Exceptions may be made to
this daily purchase limit in accordance with the "block purchase"
exemptions of the Exchange policy.
Any Class I Shares purchased pursuant to the Notice will be
cancelled. Class I Shares will be purchased at the market price of
the Class I Shares at the time of purchase and will be purchased on
behalf of the Company by a registered investment dealer. Purchases
will be made on the open market through the facilities of the
Exchange and/or alternative Canadian trading systems or by such
other means as may be permitted by the applicable securities
regulator. Any purchase of Class I Shares pursuant to the NCIB will
be financed out of cash and working capital of the Company.
The Company purchased 1,758,600 Class I Shares at an average
trading price of $38.31 during the
most recent 12-month period preceding the date hereof pursuant to
its existing normal course issuer bid, which commenced on
March 13, 2023, and will expire on
March 12, 2024, and which permitted
the Company to purchase up to a maximum of 2,214,881 Class I
Shares. All such purchases were made by means of open market
transactions at the market price as at the time of purchase.
In connection with the NCIB, the Company will also enter into an
automatic securities purchase plan ("ASPP") with a designated
broker (the "Broker") on or about the commencement date of the
NCIB. The ASPP has been reviewed by the Exchange and will
facilitate the Company's repurchase of Class I Shares under the
NCIB through the facilities of the Exchange, subject to certain
trading parameters. At its own discretion, the Broker may
repurchase Class I Shares, without the control or influence of the
Company. During the term of the ASPP, the Company will not
communicate any material undisclosed or non-public information to
the trading staff of the Broker; accordingly, the Broker may make
purchases under the ASPP at any time, including during self-imposed
trading blackouts and regardless of whether there is material
undisclosed or non-public information about the Company at the time
of purchase. The Company may otherwise vary, suspend or terminate
the ASPP only if it does not have material undisclosed or
non-public information, the decision to vary, suspend or terminate
the ASPP is not taken during a self-imposed trading blackout and
any variation, suspension or termination is made in accordance with
the terms of the ASPP.
Outside of these periods, the Class I Shares will be repurchased
by the Company at its discretion under the NCIB.
As a global enterprise ATCO Ltd. and its subsidiary and
affiliate companies have approximately 20,000 employees and assets
of $25 billion. ATCO is committed to
future prosperity by working to meet the world's essential energy,
housing, security and transportation challenges. ATCO
Structures designs, builds and delivers products to service the
essential need for housing and shelter around the globe. ATCO
Frontec provides operational support services to government,
defence and commercial clients. ATCO Energy Systems delivers
essential energy for an evolving world through its electricity and
natural gas transmission and distribution, and international
operations. ATCO EnPower creates sustainable energy
solutions in the areas of renewables, energy storage, industrial
water and clean fuels. ATCO Australia develops, builds, owns and
operates energy and infrastructure assets. ATCOenergy
and Rümi provide retail electricity and natural gas
services, home maintenance services and professional home advice
that bring exceptional comfort, peace of mind and freedom to
homeowners and customers. ATCO also has investments in ports and
transportation logistics, the processing and marketing of fly ash,
retail food services and commercial real estate. More information
can be found at www.ATCO.com.
Investor Inquiries:
Colin
Jackson
Senior Vice President, Finance, Treasury & Sustainability
(403) 808 2636
colin.jackson@atco.com
Media Inquiries:
Kurt
Kadatz
Director, Corporate Communications
(587) 228 4571
kurt.kadatz@atco.com
Forward-Looking Information:
Certain statements contained in this news release may
constitute forward-looking information. Forward-looking information
is often, but not always, identified by the use of words such as
"anticipate", "plan", "estimate", "expect", "may", "will",
"intend", "should", and similar expressions. In particular,
forward-looking information in this news release includes
references to the Company's intentions regarding the NCIB, the
purchase of Class I Shares pursuant to the NCIB, and execution of
an ASPP in connection with the NCIB.
Forward-looking information involves known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking information.
The Company's actual results could differ materially from
those anticipated in this forward-looking information as a result
of regulatory decisions, competitive factors in the industries in
which the Company operates, prevailing market and economic
conditions, availability of sellers, changes in laws and
regulations and other factors, many of which are beyond the control
of the Company.
The Company believes that the expectations reflected in the
forward-looking information are reasonable, but no assurance can be
given that these expectations will prove to be correct and such
forward-looking information should not be unduly relied
upon.
Any forward-looking information contained in this news
release represents the Company's expectations as of the date
hereof, and is subject to change after such date. The Company
disclaims any intention or obligation to update or revise any
forward-looking information whether as a result of new information,
future events or otherwise, except as required by applicable
securities legislation.
SOURCE ATCO Ltd.
