Canadian Pacific announced that it intends to renew its normal course issuer bid commencing March 17, 2015, subject to the approval of the Toronto Stock Exchange. CP’s board of directors has authorized the repurchase of up to 9.14 million of its common shares, for cancellation, representing approximately 6 percent of CP’s “public float” of common shares as at February 20, 2015.
“This new share repurchase program demonstrates CP’s continued confidence in the long-term prospects of the company and underscores our commitment to enhancing total shareholder return,” said CP CEO E. Hunter Harrison. “Our strong balance sheet and cash flow position enables us to return cash to shareholders while continuing to pursue our business strategy and invest in the franchise.”
CP is permitted to purchase up to 12,650,862 common shares during the 12 month period ending March 16, 2015 under its current program. CP has substantially completed the purchase of such shares, with 12,192,437 million shares purchased at a weighted average price of USD 202.62 as of February 20, 2015. CP expects it will complete purchases under its current normal course issuer bid prior to the expiry of the program on March 16th.