AUS
NZ
UK
CA
USA
IND
Headlines
- Dexterra Expands Share Repurchase Plan
- TSX Approves Increased Share Buyback for Dexterra
- Fairfax's Ownership to Stay Proportionate Through 2024
Dexterra Group Inc. (TSX:DXT) has secured approval from the Toronto Stock Exchange (TSX) to expand its share repurchase program. The company will increase the number of shares it can buy back under its ongoing plan, aiming to enhance shareholder value. Fairfax Financial Holdings will also maintain its proportional ownership in the company through this process.
Dexterra Group Inc. has announced that the Toronto Stock Exchange (TSX) has approved its request to amend its ongoing share buyback program. The normal course issuer bid (NCIB), which began on May 23, 2024, and runs until May 22, 2025, will now allow Dexterra to repurchase a higher number of common shares, totaling up to 3,207,361, representing approximately 5% of its total outstanding shares as of May 2024. This increase will take effect on October 16, 2024, allowing for the repurchase and cancellation of additional shares, including those from Fairfax Financial Holdings.
Fairfax, which currently holds nearly half of Dexterra’s common shares, will be able to maintain its proportional ownership under the amended buyback plan through the end of 2024. Previously, Dexterra repurchased and canceled over 165,000 shares under the NCIB. With this increase, the company can now repurchase more shares, further enhancing its ability to return value to shareholders.
Dexterra believes that its stock has been undervalued, trading at levels that do not reflect the company's business strength and future potential. The expanded buyback program is seen as a strategic move to optimize value for shareholders. Under the terms of the NCIB, Dexterra is allowed to repurchase its common shares for cancellation through the facilities of the TSX or alternative Canadian trading platforms.
From October 16, 2024, the maximum number of shares that Dexterra can repurchase under the NCIB will be adjusted. This decision also accommodates Fairfax’s participation, ensuring it can maintain its ownership level without surpassing 50%, which is important for Dexterra’s tax planning objectives.
Fairfax will sell shares to Dexterra in coordination with the company’s purchases of other shares, ensuring that the transactions occur under the rules set by the TSX. This process, guided by an automatic share disposition plan (ASDP), will continue through the end of 2024. If Fairfax is unable to sell shares on any specified trading day, Dexterra will pause further purchases until the situation is resolved.
This strategic adjustment in the NCIB reinforces Dexterra’s commitment to its shareholders, positioning the company for continued success as it navigates its financial objectives.
