Celestica said Friday that the Toronto Stock Exchange accepted its notice to launch a normal course issuer bid beginning Tuesday, Nov. 3, for up to 3,132,127 shares, about 2.5% of its public float.
The authorization runs through Nov. 2, 2027, unless Celestica completes purchases sooner. Management has discretion over the timing and amount of any repurchases, so the approved ceiling does not require the company to buy all the shares.
Daily purchases on the exchange will be capped at 109,076 shares, except under the block purchase exception. Celestica based the limit on average daily trading volume of about 436,307 shares during the six months ended Sept. 30, making the cap about one-quarter of that average. The company may also buy shares on the New York Stock Exchange, other designated exchanges and alternative Canadian trading systems.
Celestica plans to cancel repurchased shares. It expects to fund purchases with existing cash, credit-facility draws or other available borrowing. The company said it believes the buyback is in the best interests of Celestica and its shareholders.
The current bid expires Monday, Nov. 2, and authorized purchases of up to 5,722,527 shares. Through Oct. 20, Celestica had bought and canceled 205,184 shares on the New York Stock Exchange at a weighted average price of US$271.75 per share. The new authorization is scheduled to begin Tuesday, Nov. 3, the day after the current bid expires.
