Rona repurchases C$14.5 million of its shares; CEO says the buyback 'illustrates our confidence in Rona and in the execution of our business plan'
November 14, 2011
RONA inc. CA:RON -1.04% , the largest Canadian distributor and retailer of hardware, renovation and gardening products, today reported that on the first day of trading under its normal course issuer bid program, the Corporation repurchased 1,553,900 common shares at $9.30 for a total consideration of $14.5 million. The common shares thereby purchased will be cancelled. On November 8, 2011, RONA's Board of Directors authorized the Corporation to repurchase in the normal course of its activities, from November 11, 2011 to November 10, 2012, up to 11,016,854 common shares, representing 10% of its 110,168,541 public float or 8.4% of its 130,520,489 common shares issued and outstanding on October 31, 2011. Today's buyback represent 14% of the total number of shares authorized under the normal course issuer bid program and illustrates the Corporation's intention to execute the program and hence increase its return on equity.
"Today's buyback illustrates our confidence in the future of RONA and in the execution of our business plan", commented Dominique Boies, Executive Vice President and Chief Financial Officer of RONA.
"Counting on cash available and free cash flow generation, we believe the purchase of our common shares represents an effective use of our funds. This buyback program along with the recently announced offers to purchase up to $200 million aggregate principal amount of our outstanding 5.40% Debentures due October 20, 2016 are initiatives intended to optimize our capital structure, improve our return and hence increase shareholder value", added Mr. Boies.
RONA is the largest Canadian distributor and retailer of hardware, home renovation and gardening products. RONA operates a network of more than 950 corporate, franchise and affiliate stores of various sizes and formats. With close to 30,000 employees working under its family of banners in every region of Canada and more than 17 million square feet of retail space, the RONA store network generates over $6 billion in annual retail sales. For more information, please visit www.rona.ca .