VALCOURT, QC, March 18, 2016 /CNW Telbec/ - BRP Inc. (TSX: DOO) announced today that its Board of Directors has authorized the renewal of its normal course issuer bid to purchase for cancellation up to 3,396,074 subordinate voting shares over the twelve-month period commencing on March 31, 2016 and ending no later than March 30, 2017, representing approximately 10% of the public float of 33,960,749 subordinate voting shares as at March 17, 2016. As at March 17, 2016, 35,921,422 subordinate voting shares were issued and outstanding.
The normal course issuer bid will be conducted through the facilities of the Toronto Stock Exchange (the "TSX") or alternative trading systems, if eligible, and will conform to their regulations. Purchases under the normal course issuer bid will be made by means of open market transactions or such other means as the TSX or a securities regulatory authority may permit, including pre-arranged crosses, exempt offers and private agreements under an issuer bid exemption order issued by a securities regulatory authority.
Under TSX rules, BRP will be allowed to purchase daily, through the facilities of the TSX, a maximum of 24,033 subordinate voting shares representing 25% of the average daily trading volume, as calculated per the TSX rules for the most recently completed six calendar months. In addition, BRP may make, once per week, a block purchase (as such term is defined in the TSX Company Manual) of subordinate voting shares not directly or indirectly owned by insiders of BRP, in accordance with TSX rules. The subordinate voting shares purchased pursuant to the normal course issuer bid will be cancelled.
The price to be paid by BRP for any subordinate voting share will be the market price at the time of acquisition, plus brokerage fees, or such other price as the TSX may permit. In the event that BRP purchases subordinate voting shares by pre-arranged crosses, exempt offers, block purchases or private agreements, the purchase price of the subordinate voting shares may be, and will be in the case of purchases by private agreements, at a discount to the market price of the subordinate voting shares at the time of the acquisition.
BRP has the intention to enter into an automatic share purchase plan with a designated broker to allow for the purchase of subordinate voting shares under the NCIB at times when the Company would ordinarily not be permitted to purchase shares due to regulatory restrictions or self-imposed blackout periods.
Under the normal course issuer expiring March 30, 2016, BRP has purchased the maximum number of subordinate voting shares that it was allowed to purchase, being a total of 3,703,442 subordinate voting shares (representing approximately 10% of the public float of 37,034,421 subordinate voting shares as at March 25, 2015), at a volume weighted average price of $25.81. The Board of Directors of BRP believes that the purchase by BRP of its subordinate voting shares could represent an appropriate and desirable use of its available cash to increase shareholder value.
BRP (TSX:DOO) is a global leader in the design, development, manufacturing, distribution and marketing of powersports vehicles and propulsion systems. Its portfolio includes Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft, Can-Am all-terrain and side-by-side vehicles, Can-Am Spyder roadsters, Evinrude and Rotax marine propulsion systems as well as Rotax engines for karts, motorcycles and recreational aircraft. BRP supports its line of products with a dedicated parts, accessories and clothing business. With annual sales of over CA$3.8 billion from over 100 countries, the Company employs approximately 7,900 people worldwide.
Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am, Spyder and the BRP logo are trademarks of Bombardier Recreational Products Inc. or its affiliates. All other trademarks are the property of their respective owners.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
Certain statements included in this release, including, but not limited to, statements relating to potential purchases of subordinate voting shares by BRP under the normal course issuer bid, and other statements that are not historical facts, may be "forward-looking statements" within the meaning of Canadian securities laws. Forward-looking statements are typically identified by the use of terminology such as "may", "will", "would", "could", "expects", "plans", "intends", "anticipates" or "believes" or the negative or other variations of these words or other comparable words or phrases. Forward-looking statements, by their nature, are based on assumptions, and are subject to important risks and uncertainties. Forward-looking statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business. Actual results may differ materially from results indicated in forward-looking statements due to a number of factors, including those identified in BRP's annual information form and management's discussion and analysis of financial condition and results of operations. The forward-looking statements contained in this release represent BRP's expectations as of the date of this release (or as of the date they are otherwise stated to be made), and are subject to change after such date. However, BRP disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.
SOURCE BRP Inc.