#Canada #share buyback #Calgary #Parkland Corporation #TSX PKI

Parkland Corporation Announces Normal Course Issuer Bid

Parkland Corporation, a leading fuel distributor based in Calgary, Alberta, has recently made a significant announcement regarding its plan to launch a normal course issuer bid (NCIB). This initiative, accepted by the Toronto Stock Exchange (TSX), is aimed at purchasing back up to 13,814,717 common shares, which represents approximately 10% of its total public float as of November 18, 2024.

Details of the Normal Course Issuer Bid

The NCIB is set to commence on December 1, 2024, and will run until November 30, 2025, unless the maximum number of shares is acquired before this date or the company decides to terminate the bid earlier. The company currently has 173,781,684 shares issued and outstanding, and this buyback is designed to enhance shareholder value by potentially addressing any discrepancies between the market price of the shares and their intrinsic value.

In addition to the NCIB, the company has established an Automatic Share Purchase Plan (ASPP) with a designated broker. This plan is purposed to facilitate shares’ purchases during predefined blackout periods, ensuring that the company can continue to act in shareholder interests throughout the duration of the NCIB, according to the regulatory guidelines.

The management of Parkland sees this buyback as a strategic move not only to return capital to shareholders but also as a reflection of their confidence in the company’s value. Such initiatives are intended to reassure stakeholders of Parkland's commitment to maximizing shareholder returns and capital efficiency.

Ongoing Commitment to Shareholders

This announcement builds on Parkland's existing NCIB, under which the company previously repurchased 3,107,038 shares at an average price of $42.6734 each between December 2023 and November 2024. The aim of the new NCIB is a continuation of Parkland’s strategy to enhance capital returns to its investors through effective share buyback policies, meshing with the company’s overall financial objectives.

Market conditions continue to evolve, and Parkland’s management acknowledges that the actual number of shares repurchased under this bid may vary based on several factors, including overall market conditions and company performance. As responsible stewards of shareholder capital, the decision to proceed with share buybacks must also align with the company's operational objectives and market dynamics.

The Future of Parkland Corporation

Moving forward, Parkland Corporation remains steadfast in its strategy of leveraging its supply base to achieve competitive pricing while emphasizing customer loyalty and environmental sustainability. The company's structure allows substantial operational capabilities across approximately 4,000 retail and commercial outlets in Canada, the United States, and the Caribbean, providing a robust framework for future growth.

In conclusion, the initiation of the NCIB not only signifies Parkland Corporation's proactive approach to managing its capital but also reflects its ambition to maintain its position as a formidable player in the fuel distribution sector. The company's commitment to enhancing shareholder value is clear, and the coming months will reveal the impact of this strategic initiative on its overall market performance and investor confidence.