BOUCHERVILLE, QUEBEC--(Marketwired - Nov. 11, 2014) - The Board of Directors of RONA inc. (TSX:RON)(TSX:RON.PR.A) has authorized the Corporation to purchase in the normal course of its activities, from November 18, 2014 to November 17, 2015, up to 9,207,281 of its common shares, representing 10% of its 92,072,811 public float or 7.94% of its 115,991,010 common shares issued and outstanding on November 11, 2014. This issuer bid is subject to the approval of the Toronto Stock Exchange.
"Counting on cash available and free cash flow generation, we believe the purchase of our common shares would represent an effective use of our capital. This buyback program is part of our initiatives intended to optimize our capital structure and increase shareholder value", commented Dominique Boies, Executive Vice President and Chief Financial Officer of the Corporation.
Under this issuer bid, the purchases will be made at market prices through the facility of the Toronto Stock Exchange or alternative Canadian trading platforms, in accordance with the requirements of the Toronto Stock Exchange. The common shares thereby purchased will be cancelled.
The average daily trading volume of the Corporation's common shares was 156,866 common shares on the Toronto Stock Exchange over the last six completed calendar months. Accordingly, since the Corporation is entitled to purchase up to 25% of the average daily trading volume on any trading day, it can purchase 39,216 common shares per day in addition to block trades in accordance with the Toronto Stock Exchange rules.
In the preceding twelve-month period, the Corporation repurchased 6,097,500 common shares for a total consideration of $77.4 million (at a volume weighted average price of $12.69 per share).
Shareholders may obtain a free copy of the documents filed with the Toronto Stock Exchange concerning this bid by writing to the Corporate Secretary of RONA at 220 chemin du Tremblay, Boucherville, Quebec, J4B 8H7.
About RONA
RONA inc. is a major Canadian retailer and distributor of hardware, building materials and home renovation products. The Corporation operates a network of over 500 corporate, franchise and independent affiliate stores of complementary formats. With its 8 distribution centers, RONA serves its own network as well as many independent dealers operating under different banners, including Ace for which RONA owns the licensing rights and is the exclusive distributor in Canada. With the help of its nearly 24,000 employees, the Corporation generates annual consolidated sales of $4.2 billion. For more information, visit rona.ca.
Forward-looking statements
This Press Release includes "forward-looking statements" that involve risks and uncertainties. All statements other than statements of historical facts included in this Press Release, including statements regarding the prospects of the industry and prospects, plans, financial position and business strategy of the Corporation may constitute forward-looking statements within the meaning of the Canadian securities legislation and regulations. Investors and others are cautioned that undue reliance should not be placed on any forward-looking statements.
For more information on the risks, uncertainties and assumptions that would cause the Corporation's actual results to differ from current expectations, please also refer to the Corporation's public filings available at www.sedar.com and www.rona.ca. In particular, further details and descriptions of these and other factors are disclosed in the MD&A under the "Risks and uncertainties" section and in the "Risk factors" section of the Corporation's current Annual Information Form.
The Corporation expressly disclaims any obligation or intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by the applicable securities laws.