01—Abstract
Summary
Summary of the 6-K filed June 11, 2014. Cited figures are marked; the original filing is the authoritative source.
Canadian Pacific Railway Limited (CP) announced on June 11, 2014, its intention to purchase up to 456,791 of its common shares through private agreements.
These repurchases are part of the company's ongoing share repurchase program, authorized earlier in March 2014, and will be conducted at a discount to the prevailing market price. The purchases are facilitated by an exemption order from the Ontario Securities Commission and are expected to be completed by March 16, 2015. This initiative aims to return capital to shareholders by effectively reducing the number of outstanding shares.
Investors should note that the total number of shares CP can acquire through this specific private agreement mechanism will not exceed one-third of the overall share purchase program limit. The company has already completed a previous purchase of 1,300,000 shares under an earlier exemption order.
02—Key points
Key Highlights
- Canadian Pacific Railway Limited (CP) plans to buy back up to 456,791 common shares.
- Share repurchases will be made through private agreements with a third-party seller.
- Purchases will be executed at a discount to the current market price.
- The buyback is part of CP's existing share repurchase program, announced on March 11, 2014.
- The company has received an issuer bid exemption order from the Ontario Securities Commission for these private purchases.
- These new purchases, along with previous ones, will not exceed one-third of the total authorized amount under the share repurchase program.
- CP has previously purchased 1,300,000 shares under a prior exemption order.
03—Questions
Frequently Asked Questions
What is the primary purpose of this announcement?
The primary purpose of this announcement is to inform investors that Canadian Pacific Railway Limited (CP) intends to repurchase a portion of its outstanding common shares through private agreements. This action is part of the company's ongoing share repurchase program, designed to return value to shareholders.
How will the shares be purchased, and at what price?
The shares will be purchased through private agreements with an arm's-length third-party seller. These purchases will be made at a discount to the prevailing market price of CP's common shares on the Toronto Stock Exchange at the time of each transaction.
What is the total number of shares CP intends to repurchase under this specific initiative?
CP intends to purchase up to 456,791 common shares through these private agreements. This number is in addition to shares already repurchased under previous agreements.
How does this repurchase program relate to CP's overall share repurchase plan?
This specific initiative to purchase up to 456,791 shares through private agreements is part of a larger share repurchase program announced on March 11, 2014, which authorized the purchase of up to 5,270,374 shares. The total number of shares CP can purchase via private agreements under this program will not exceed one-third of the overall maximum authorized amount (which is 1,756,791 shares in aggregate).
04—Continue