CAE Inc. Secures Approval for Renewal of Its Share Buyback Plan

CAE Inc. Secures Regulatory Approval for Share Buyback



In a recent announcement, CAE Inc. (NYSE: CAE) revealed that it has obtained the necessary regulatory clearance to renew its normal course issuer bid (NCIB), which empowers the company to repurchase up to 16,019,294 of its common shares. This bid is set to commence on June 10, 2025, and will conclude on June 9, 2026.

The approved buyback program permits CAE to repurchase approximately five percent of its currently issued and outstanding shares, reflecting the company’s strategic decision to bolster shareholder value. The execution of these purchases will be subject to management's discretion, which will be informed by prevailing market conditions, stock performance, and overall financial strategies.

Details of the Buyback



Shares will be acquired primarily through the Toronto Stock Exchange (TSX) and could also involve transactions via the New York Stock Exchange (NYSE), in addition to compliance with various regulations that govern these marketplaces. The approach allows CAE flexibility in selecting optimal conditions for purchases, including potential off-exchange transactions at discounted rates.

To facilitate this initiative, CAE has appointed RBC Dominion Securities Inc. as its designated brokerage firm. Notably, CAE has also enacted an automatic repurchase plan agreement (ARPA) with RBC, which enables share repurchases during periods when the company might typically face restrictions due to regulatory blackouts. This innovative step shows CAE's commitment to a disciplined and responsible capital management strategy.

Historical Context



Previously, under the NCIB that ran from May 30, 2024, to May 29, 2025, CAE had the approval to purchase up to 15,932,187 common shares. By the end of that period, the company successfully repurchased 856,230 shares at an average price of $24.85, totaling about $21.3 million. This highlights a track record of proactive measures to enhance shareholder returns.

During the upcoming NCIB period, CAE has stated its intention to restrict repurchase activities to open market transactions, ensuring alignment with best practices in corporate governance. Based on recent trading data, CAE's average daily trading volume exceeded 733,000 shares, allowing for a calculated daily buyback limit to avoid market disruption.

Looking Forward



The Board of Directors views the renewal of the NCIB as a vital part of CAE's capital allocation framework. The goal is to use available funds effectively to create additional value for shareholders. The strategic repurchase of shares is expected to support CAE's market position and potentially enhance earnings per share by reducing the number of outstanding shares.

About CAE



CAE is a global leader in delivering training, simulation, and operational solutions, primarily focused on the aviation and defense sectors. With nearly 80 years of experience, CAE operates around 240 training locations worldwide and employs approximately 13,000 professionals. The company's mission is to advance safety and effectiveness in the sectors it serves, ensuring that its clients are well-prepared for critical operations.

Investors are now keenly watching how this renewed buyback strategy unfolds in the coming months, reflecting CAE's dedication to shareholder interests amidst evolving market dynamics.

Conclusion



As CAE embarks on this new phase of its normal course issuer bid, the company not only emphasizes its commitment to shareholders but also showcases its robust operational foundation. This initiative anticipates serving as a positive signal to the market, reinforcing CAE's standing as a proactive and strategically sound enterprise.

Topics General Business)

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