#Canada #share repurchase #Alimentation Couche-Tard #Stock Market #Laval

Couche-Tard Reinitiates Share Repurchase Program

Alimentation Couche-Tard Inc., a prominent player in the convenience store industry, recently announced a significant decision regarding its financial strategy. On July 21, 2025, the Toronto Stock Exchange (TSX) granted approval for Couche-Tard to embark on a share repurchase program. This program allows the company to buy back up to 77,115,921 common shares, equating to approximately 10% of its public float, which totals 771,159,210 shares as of July 14, 2025.

Overview of the Share Repurchase Program

Based on the current stock price, if Couche-Tard fully executes this program, it could result in an investment totaling around USD 4.2 billion, or CAD 5.8 billion. Notably, as of July 14, 2025, there are 948,064,405 shares issued and outstanding in the market. The average daily trading volume for Couche-Tard shares during the six months prior to June 30, 2025, stands at 1,316,554 shares, with the company allowed to repurchase up to 25% of this volume daily—meaning a total of 329,138 shares.

Strategic Justification Behind the Program

Filipe Da Silva, the company's Chief Financial Officer, emphasized that repurchasing shares is a prudent use of Couche-Tard's financial resources and represents a strategic investment aligned with the company’s long-term goals. He stated, "With a strong balance sheet and confidence in our long-term strategy, we believe this program represents an efficient way to create long-term shareholder value." By reducing the number of shares in circulation, the proportional stake of remaining shareholders will automatically increase, enhancing overall shareholder value.

Execution Details

The share repurchase program is slated to commence on July 23, 2025, and will extend for a year, concluding by July 22, 2026. The purchases will be executed on the TSX and alternate trading systems in Canada, and shares will be bought at their market price at the acquisition time. However, any shares purchased outside TSX’s facilities through regulatory exemptions will be at a discount to the market price.

Management will retain discretion regarding when to repurchase shares and at what price, contingent on market conditions. All repurchased shares will be canceled upon acquisition.

Previous Program and Additional Measures

This current program follows a previous buyback initiative that started on May 1, 2024, and concluded on April 30, 2025. Under that program, Couche-Tard had approval to repurchase up to 78,083,521 shares and completed the purchase of 8,695,652 shares through private agreements outside TSX.

Furthermore, Couche-Tard has set up an Automatic Share Purchase Plan (ASPP) in connection with this program. This plan will allow shares to be repurchased even during self-imposed blackout periods, ensuring that purchases can occur regardless of regulatory constraints. The designated broker will have the discretion to execute purchases within the parameters set by Couche-Tard prior to any blackout periods.

Couche-Tard’s Profile

Alimentation Couche-Tard is recognized as a global leader in the convenience store sector, operating approximately 17,000 retail locations across 29 countries and territories. With popular banners like Couche-Tard and Circle K, the company holds a notable position in the convenience business and fuel retailing in multiple global markets, including Canada, Scandinavia, and parts of Europe. The firm employs around 146,000 individuals within its network, reflecting its significant scale and operational capacity.

For additional information regarding financial statements and investor relations, stakeholders can visit Couche-Tard’s official corporate website. The strategic move to reinstate the share repurchase program signals Couche-Tard’s commitment to enhancing shareholder value and confidence in its business trajectory moving forward.