LFL to spend $200M in substantial issuer bid
TORONTO – Leon’s Furniture Limited (LFL) will spend as much as $200 million to acquire as much 10.7% of its outstanding common shares as part of a substantial issuer bid that began last week and will close on December 30, 2021.
In a statement, the publicly held retailer said as of November 16, 2021, the were slightly less than 76.8 million common shares issued and outstanding.
The offer will be conducted in a ‘modified Dutch auction’ when those holders of common shares wishing to cash them in have to specify how many shares they are tendering and at a price of not less than $24.30 and no more than $25.05 (the maximum price per share being offered).
The final price per share will be the lowest that enables LFL to purchase the maximum number of common shares for the $200 million set aside for the bid. If the final bid price was $24.30, the company would reacquire about 8.2 million common shares.
It should be noted LFL shares were valued at $24.15 at the close of trading on the Toronto Stock Exchange (TSX) when the bid was announced last Thursday (November 25, 2021).
LFL also announced that its ‘normal course issue bid’ announced on September 15, 2021, has been suspended and won’t be reactivated until after the substantial issuer bid has expired.
The offer documents are being mailed to shareholders and filed with all applicable Canadian securities administrators. They can also be found on SEDAR at www.sedar.com.
The bid has the approval of LFL’s board of directors, which also engaged CIBC World Markets as its dealer manager and exclusive financial advisor and agent in connection with the offer. Itg has also engaged TSX Trust Company to act as depositary for the offer.
Related Story: LFL sets 3Q sales record