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CGI Group Inc. (TSX: GIB.A)(NYSE: GIB) announced today that its Board of Directors has authorized the renewal of its Normal Course Issuer Bid (“NCIB”), subject to acceptance by the Toronto Stock Exchange (the “TSX”).
The Company’s management and Board of Directors believe that the repurchase of Class A subordinate voting shares (“Class A Shares”) of the Company is a proper use of the Company’s funds, and the NCIB will provide the Company with the flexibility to purchase Class A Shares from time to time as the Company considers it advisable, as part of its strategy to increase shareholder value.
At the close of business on January 25, 2013, there were 274,486,679 Class A Shares outstanding, of which approximately 75% were widely held (representing a public float of 206,859,765 Class A Shares for TSX purposes).
Under the terms of the NCIB, subject to TSX acceptance, the Company may purchase for cancellation on the open market through the facilities of the TSX and the New York Stock Exchange and through alternative trading systems up to 20,685,976 Class A Shares, representing approximately 10% of the Company’s public float as of the close of business on January 25, 2013. The average daily trading volume (the “ADTV”) of the Class A Shares on the TSX for the six month period ended December 31, 2012 (excluding purchases under the NCIB) was 732,717 Class A Shares. Consequently and in accordance with the requirements of the TSX, the daily purchase limit under the NCIB on the TSX will be 183,179 Class A Shares, representing 25% of the ADTV. All Class A Shares will be purchased at their market price at the time of acquisition. All shares purchased under the NCIB will be cancelled.
Purchases of Class A Shares may commence on February 11, 2013 and will expire on the earlier of February 10, 2014 or the date on which the Company has either acquired the maximum number of Class A Shares allowable under the NCIB or otherwise decided not to make any further repurchases under the NCIB.
Under the terms of its NCIB that commenced on February 9, 2012 and will expire on February 8, 2013, the Company had purchased, as of January 25, 2013, an aggregate of 1,050,700 Class A Shares for cancellation. These purchases were made through the facilities of the TSX and the New York Stock Exchange and through alternative trading systems at a weighted average purchase price of $20.68.
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