SASKATOON, Saskatchewan - Nutrien Ltd. (TSX:NYSE:NTR, NYSE:NTR), a major provider of crop inputs and services, has received approval from the Toronto Stock Exchange to initiate a normal course issuer bid (NCIB), which will allow the company to repurchase up to five percent of its issued and outstanding common shares. The buyback plan underscores Nutrien's commitment to returning capital to its shareholders and its belief that its own shares are currently an attractive investment opportunity.
The NCIB enables Nutrien to conduct share repurchases through the TSX, the New York Stock Exchange, and alternative trading systems in Canada and the U.S., in accordance with regulatory requirements. The process will adhere to the TSX's rules for NCIBs and the U.S. Securities Exchange Act's Rule 10b-18, which limit the number of shares that can be bought on a single day, except for block purchases.
Nutrien has set the maximum daily repurchase limit on the TSX to 25 percent of the average daily trading volume, which equates to 290,908 common shares, based on the current average volume of 1,163,632 shares. The company plans to cancel all shares acquired through this buyback program.
The repurchase activity is slated to start on March 1, 2024, and will end on the earlier of February 28, 2025, when the maximum number of shares has been bought, or when the company decides to halt the buybacks. As of February 16, 2024, Nutrien had a total of 494,563,180 common shares outstanding, which means up to 24,728,159 shares could be repurchased under the NCIB.
Nutrien's previous NCIB, which will expire on February 29, 2024, resulted in the repurchase of 5,375,397 common shares at an average price of US$69.76 per share, totaling approximately US$374.9 million. These shares were also acquired on the open market.
This share repurchase initiative is part of Nutrien's broader strategy to create long-term value for its shareholders, focusing on investments that leverage the strengths of its integrated business model.
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