BRP Inc. Announces Renewal of Normal Course Issuer Bid to Enhance Shareholder Value

BRP Inc. Announces Renewal of Its Normal Course Issuer Bid

On December 6, 2024, BRP Inc. (commonly known as Bombardier Recreational Products), publicly declared the renewal of its Normal Course Issuer Bid (NCIB) after receiving the green light from the Toronto Stock Exchange (TSX). This strategic move permits the buyback of up to 3,331,852 subordinate voting shares over the period starting December 10, 2024, to December 9, 2025. This figure represents nearly 10% of the total public float of subordinate voting shares as of December 4, 2024.

As per the company’s records, a total of 34,490,799 subordinate voting shares have been issued and outstanding by that date. The buyback initiative, designed to enhance shareholder value, will be executed through the TSX's framework or other Canadian trading systems if deemed eligible, strictly adhering to their respective regulations. Under this NCIB, BRP plans to make purchases via open market transactions or various means permitted by securities regulatory authorities, including private agreements under exempt orders.

Daily Purchase Limits and Strategies

BRP’s operational strategy includes a daily limit on buybacks according to TSX regulations. Specifically, the company can acquire a maximum of 57,248 subordinate voting shares each day, which corresponds to 25% of the average daily trading volume of 228,995 calculated over a six-month window. Furthermore, the firm has the option to execute once-a-week block purchases of shares not owned by company insiders, also in line with TSX guidelines.

The price per share during these buyback transactions will be determined by the market price at the time of acquisition, inclusive of brokerage fees. In scenarios where BRP resorts to pre-arranged crosses, exempt offers, or private agreements for acquisitions, it may negotiate a purchase price lower than the prevailing market rate.

Automatic Share Purchase Plan (APP)

To enhance its buyback strategy, BRP has also initiated an Automatic Share Purchase Plan (APP) with a designated broker, designed to facilitate the acquisition of shares even when company regulations or blackout periods typically restrict such activities. Before entering any blackout period, BRP may allow the broker to execute purchases according to terms that align with the APP—which has already been approved by the TSX and will come into effect on January 24, 2025.

During periods when these self-imposed restrictions aren't in play, BRP will conduct share repurchases based on management's discretion while adhering to TSX rules and applicable securities guidelines. Purchases made under the APP will contribute to the overall count of shares repurchased under the NCIB framework.

Historical Context

Reflecting on the previous NCIB, which concluded on December 4, 2024, BRP successfully repurchased 3,231,999 subordinate voting shares at a volume-weighted average price of CAD 90.76. These transactions, conducted primarily through the TSX and alternative trading platforms, adhered to all regulatory standards as determined by BRP's management team.

The company's Board of Directors stands firmly behind this initiative, believing that investing in its own shares represents a judicious use of available capital aimed at enhancing overall shareholder value. BRP Inc. maintains its position as a preeminent global leader in the powersports sector, backed by over 80 years of innovation, and is committed to sustainability by developing electric models for its product lineup.

With annual revenues of around CAD 10.4 billion from over 130 countries and a dedicated workforce of nearly 20,000 as of January 31, 2024, BRP continues to solidify its stature and influence in the market.

For further updates on BRP's initiatives and products, visit BRP's official site or follow them on social media @BRPNews.