Mitel Announces TSX Acceptance of Normal Course Issuer Bid

Mitel (TSX:MNW; NASDAQ:MITL) has announced that its board of directors has authorized a share buyback program.

As quoted in the press release:

 In a filing with the Toronto Stock Exchange (the “TSX”), the TSX has accepted the company’s Notice of Intention to Make a Normal Course Issuer Bid (the “Notice”). Pursuant to the Notice, Mitel may purchase up to 6,006,761 Mitel Common Shares (the “Bid”), representing approximately 5% of its issued and outstanding Common Shares. As at February 23, 2018, Mitel had 120,135,230 issued and outstanding Common Shares, including a public float of 103,619,382 Common Shares. Pursuant to its normal course issuer bid commenced March 9, 2017 and terminating March 8, 2018, Mitel sought and was approved for purchase of up to 7,816,574 of its Common Shares, and has actually purchased 4,950,979 of its Common Shares at a weighted average price per Common Share of $7.21.  These purchases were made on the open market through the facilities of the TSX and the NASDAQ.

“With our strong focus on shareholder value, the maintenance of our ability to repurchase shares through the normal course share buyback program enhances our initiatives and options to maximize that value,” said Richard McBee, Chief Executive Officer.

Mitel may purchase its Common Shares, from time to time, if it believes that the market price of its Common Shares is attractive and that the purchase would be an appropriate use of corporate funds and in the best interests of the Corporation. Common Shares purchased pursuant to the Bid will be cancelled. Mitel believes that having the ability to acquire Common Shares under the Normal Course Issuer Bid will present an attractive opportunity to utilize Mitel’s available funds. The Normal Course Issuer Bid is intended to permit the Company to reduce its total number of issued and outstanding Common Shares, thereby benefiting all shareholders by increasing their relative equity interests in Mitel.

Click here to read the full press release.