West Fraser increases Dividend and Share Buyback Authorization
Published on : Wednesday, June 9, 2021
West Fraser Timber Co. Ltd. (“West Fraser” or the “Company”) (TSX and NYSE: WFG) announced today an increase in the quarterly dividend to C$0.25 per share and an increase in the Company’s authorization to purchase up to 9,582,470 of its Common shares (the “Shares”).
The Board of Directors of the Company has declared a quarterly dividend of C$0.25 per share on the Common shares and the Class B Common shares in the capital of the Company, payable on July 6, 2021 to shareholders of record on June 21, 2021. This is an increase from the previous quarterly dividend of C$0.20 per share.
Dividends are designated to be eligible dividends pursuant to subsection 89(14) of the Income Tax Act (Canada) and any applicable provincial legislation pertaining to eligible dividends.
The rules and policies of the TSX contain restrictions on the number of shares that can be purchased under the NCIB, based on the average daily trading volumes of the Common Shares on the TSX. Similarly, the safe harbor conditions of Rule 10b-18 impose certain limitations on the number of shares that can be purchased on the NYSE per day. Pursuant to TSX policies, the daily purchases on the TSX will not exceed 239,815 Common shares, representing 25% of the average daily trading volume of 959,262 Shares. The maximum number of shares which can be purchased per day on NYSE will be 25% of the average daily trading volume for the four calendar weeks preceding the date of purchase. Daily purchase limits on TSX and NYSE are subject to certain exemptions for eligible “block” trade purchases.
All purchases will be subject to West Fraser’s normal trading blackouts, other than purchases made pursuant to a pre-defined automatic securities purchase plan that West Fraser may enter into with its designated broker. In connection with the amended NCIB, West Fraser will amend its existing automatic share purchase plan pursuant to which the securities dealer acting as the Company’s agent for the NCIB may acquire, at its discretion, Shares of West Fraser, subject to certain parameters as to price and number of Shares.