Colliers Initiates Share Buyback to Enhance Shareholder Value
Colliers Announces Normal Course Issuer Bid
Colliers International Group Inc. (NASDAQ: CIGI) has recently announced its intention to implement a normal course issuer bid (NCIB) regarding its subordinate voting shares. This initiative has garnered acceptance from the Toronto Stock Exchange (TSX), marking an important strategy in its financial toolbox.
Details of the NCIB Program
Beginning on May 9, Colliers plans to acquire up to 4,300,000 subordinate voting shares over a twelve-month period. This volume represents around 10% of the public float calculated as of April 30. The company intends to execute these purchases through various trading platforms including the TSX and Nasdaq, emphasizing their commitment to maintaining flexibility while adhering to regulatory guidelines.
Purchase Guidelines and Limitations
Colliers is set to conduct its purchases in a disciplined manner, limiting the number of shares acquired daily to 13,777, barring block purchases. The aim is to ensure market stability while protecting shareholder interests during the buyback period.
Reasons Behind the Buyback
The management team at Colliers believes that these share purchases will benefit shareholders and represent a sound investment decision. Engaging in a buyback program allows Colliers to take advantage of favorable market conditions, ensuring that funds are used effectively to enhance shareholder equity.
Historical Context
This new NCIB follows a previous program where Colliers had authorization to repurchase 4,000,000 shares. Interestingly, no shares were purchased during that period, pointing to a potentially strategic choice in maintaining liquidity and optimizing investor returns.
Brokerage and Share Purchase Plans
BMO Nesbitt Burns Inc. has been appointed as Colliers’ designated broker for the NCIB. A notable aspect of this initiative is the automatic share purchase plan (ASPP) established with BMO. This plan is designed to facilitate share acquisitions during times when regulatory restrictions might typically prevent such purchases.
Empowering Shareholders
The buyback initiative reflects Colliers' commitment to enhancing shareholder value by optimizing its capital structure. The implementation of the ASPP allows for timely purchase opportunities, enabling Colliers to capitalize on advantageous market dynamics without disrupting the trading of its shares.
About Colliers International
Colliers (NASDAQ, TSX: CIGI) operates as a diversified global services and investment management company. With expertise spanning three main sectors—Real Estate Services, Engineering, and Investment Management—the company prides itself on its ability to deliver sustainable returns. Over the course of three decades, Colliers has continued to yield impressive returns, driven by strong leadership and a thriving corporate culture.
Company Growth and Performance
With over $5 billion in annual revenue and a dedicated team of 23,000 professionals, Colliers manages assets exceeding $100 billion. This robust framework underpins their mission to foster growth and success for not only their clients and investors but also for employees globally.
Frequently Asked Questions
What is the purpose of the normal course issuer bid?
The NCIB allows Colliers to repurchase its shares to enhance shareholder value and optimize its capital management strategy.
How many shares does Colliers plan to buy back?
Colliers aims to repurchase up to 4,300,000 subordinate voting shares under this program.
Who is managing the buyback process?
BMO Nesbitt Burns Inc. has been designated as the broker to manage the share purchases for Colliers.
What impact does the buyback have on shareholders?
The buyback is designed to increase value for shareholders by decreasing the number of shares outstanding, thereby potentially increasing earnings per share.
What is Colliers' commitment regarding corporate governance?
Colliers is committed to transparent corporate governance, aiming to act in the best interests of all its stakeholders during this buyback phase.
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