TORONTO, April 29, 2024 (GLOBE NEWSWIRE) -- Martinrea International Inc. (TSX: MRE) ("Martinrea" or the "Company"), today announced that it has filed with the Toronto Stock Exchange (the "TSX"), and the TSX has accepted, its notice of intention to make a normal course issuer bid (the "NCIB"). Pursuant to the NCIB, Martinrea is entitled to purchase for cancellation up to 6,435,000 common shares ("Shares") over a 12-month period, representing approximately 10% of the public float of the Shares currently outstanding.
The NCIB will commence on May 2, 2024 and terminate on May 1, 2025, or such earlier date on which purchases under the NCIB have been completed. Purchases of Shares under the NCIB will be made through the facilities of the TSX and/or alternative Canadian trading systems at the market price of the Shares at the time of acquisition, and may include block purchases. The average daily trading volume of the Shares on the TSX for the last relevant six month period (October 2023 through March 2024) is 171,554 Shares. The maximum number of Shares that may be purchased on a daily basis, subject to any approved exceptions, will be 42,888 Shares. Shares purchased under the NCIB will be cancelled. As at April 26, 2024, the current number of issued and outstanding common shares outstanding is 76,740,240.
The Company may enter into a pre-defined automatic securities purchase plan with its broker to allow for the repurchase of Shares at times when the Company ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. Any such plans entered into will be adopted in accordance with applicable Canadian securities laws. Outside of the restricted periods, the timing of purchases will be determined by management of the Company.
During the past 12 months, Martinrea was authorized to repurchase up to 5,000,000 Shares under a normal course issuer bid which commenced on April 4, 2023 and terminated on April 3, 2024 (the "Prior Bid"). Martinrea purchased 3,671,855 Shares for cancellation under the Prior Bid at a weighted average price of approximately $12.38. The Prior Bid purchases were made on the open market through the facilities of the TSX and/or alternative Canadian trading systems. The Company did not make purchases during designated black out periods or during periods that the UAW was on strike with OEMs in the U.S.
The Company believes that the Shares may from time-to-time trade in a price range that does not adequately reflect the value of the Shares in relation to the Company's activities and future prospects. As a result, the Company believes that the purchase of Shares, from time to time, would be an appropriate use of corporate funds in light of potential benefits to remaining shareholders.
About Martinrea International Inc.
Martinrea International Inc. is a leader in the development and production of quality metal parts, assemblies and modules, fluid management systems, and complex aluminum products focused primarily on the automotive sector. Martinrea currently operates in 56 locations in Canada, the United States, Mexico, Brazil, Germany, Slovakia, Spain, China, South Africa, and Japan. Martinrea's vision is making lives better by being the best supplier we can be in the products we make and the services we provide. For more information on Martinrea, please visit www.martinrea.com. Follow Martinrea on X and Facebook.
Cautionary Statement on Forward-Looking Information:
This Press Release and the documents incorporated by reference therein contains forward-looking statements within the meaning of applicable Canadian securities laws including statements related to the purchase of shares under the NCIB as well as other forward-looking statements. The words "continue", "expect", "anticipate", "estimate", "may", "will", "should", "views", "intend", "believe", "plan" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that the Company believes are appropriate in the circumstances, such as expected sales and industry production estimates, current foreign exchange rates, timing of product launches and operational improvement during the period, and current Board approved budgets. Many factors could cause the Company's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors discussed in detail in the Company's Annual information Form for the year ended December 31, 2023, the Company's MD&A for the year ended December 31, 2023 and other public filings which can be found at www.sedarplus.ca. These factors should be considered carefully, and readers should not place undue reliance on the Company's forward-looking statements. The Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
For further information, please contact:
Neil Forster - Director, Investor Relations and Corporate Development
Martinrea International Inc.
3210 Langstaff Road
Vaughan, ON L4K 5B2
Tel: 289-982-3020
Fax: 289-982-3001
