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March 17, 2000
Canada Bread, Limited: Notice of Intention with the TSE
TORONTO, ONTARIO--Canada Bread Company, Limited (TSE:CBY) announced today that it has filed a Notice of Intention to make a normal course issuer bid with The Toronto Stock Exchange and that the Exchange has accepted the Notice of Intention. Under the bid, the Company will have the right to purchase, commencing March 24, 2000, up to a maximum of 1,070,840 of its Common Shares (representing approximately 5% of its outstanding Common Shares) over the following twelve months through the facilities of the Exchange. The Company currently has 21,416,812 Common Shares outstanding. Common Shares purchased by the Company under the bid will be cancelled.
The normal course issuer bid will remain in effect until the earlier of the date on which the maximum number of Common Shares permitted under the bid have been purchased, the date the Company provides notice of termination of the bid, or March 23, 2001.
Mr. Michael H. Vels, Chief Financial Officer of the Company, said: "We consider the Company's shares to be undervalued at current market prices based on the Company's current earnings and future prospects, and should their value decline, they could become an attractive investment for the Company.
Canada Bread Company, Limited, which is 68% owned by Maple Leaf Foods Inc., is Canada's leading manufacturer and distributor of bakery products to the retail and food service business. In 1999, it had sales of $567 million.
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