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CP announces intention to launch new share repurchase program and increases dividend by 43 percent

CALGARY, April 20, 2016 /PRNewswire/ - Canadian Pacific (CP) CP, +2.80% today announced that it intends to seek Toronto Stock Exchange (TSX) acceptance of a new normal course issuer bid. Subject to TSX acceptance, CP's board of directors has authorized the repurchase of up to 6.91 million of its common shares, for cancellation, representing approximately 5 percent of CP's "public float" of common shares as at April 19, 2016.

The board also authorized an increase to the company's quarterly dividend to $0.50 per share from $0.35 payable on July 25, 2016 to shareholders of record on June 24, 2016.

"With the increase in our dividend and the new share repurchase program, we are renewing our commitment to return cash to shareholders in a disciplined manner that affirms our confidence in the long-term plan for CP," said CP CEO E. Hunter Harrison. "We have established a solid foundation to build on, and we believe that the long term outlook for CP remains strong."

The actual number of common shares that will be repurchased, and the timing of any such purchases, will be determined by CP, subject to the limits imposed by the TSX. There cannot be any assurances as to how many common shares will ultimately be acquired by CP.

CP purchased 11,375,189 of its common shares at a weighted average price of $198.46 under its previous normal course issuer bid, which expired March 17, 2016.

Note on forward-looking information

This news release contains certain forward-looking information within the meaning of applicable securities laws relating, but not limited, to CP's intention to commence a normal course issuer bid and potential future purchases of CP...