CGI Group Inc. Board Authorizes the Renewal of its Normal Course Issuer Bid
January 27 2010 - 8:28AM
PR Newswire (US)
Stock Market Symbols GIB.A (TSX) GIB (NYSE) MONTREAL, Jan. 27
/PRNewswire-FirstCall/ -- CGI Group Inc. (TSX: GIB.A; NYSE: GIB)
(the "Company") announced today that its Board of Directors has
authorized the renewal of its Normal Course Issuer Bid ("NCIB"),
subject to acceptance by the Toronto Stock Exchange (the "TSX").
The Company's management and Board of Directors believe that the
repurchase of Class A subordinate voting shares ("Class A Shares")
of the Company is a proper use of the Company's funds, and the NCIB
will provide the Company with the flexibility to purchase Class A
Shares from time to time as the Company considers it advisable, as
part of its strategy to increase shareholder value. At the close of
business on January 25, 2010, there were 256,093,729 Class A Shares
outstanding, of which approximately 98% were widely held
(representing a public float of 251,510,587 Class A Shares). Under
the terms of the NCIB, subject to TSX acceptance, the Company may
purchase for cancellation on the open market through the facilities
of the TSX and the New York Stock Exchange and through alternative
trading systems (such as Alpha ATS) up to 25,151,058 Class A
Shares, representing approximately 10% of the Company's public
float as of the close of business on January 25, 2010. The average
daily trading volume (the "ADTV") of the Class A Shares on the TSX
for the past six months (excluding purchases under the NCIB) was
710,835 Class A Shares. Consequently and in accordance with the
requirements of the TSX, the daily purchase limit under the NCIB on
the TSX will be 177,708 Class A Shares, representing 25% of the
ADTV. All Class A Shares will be purchased at their market price at
the time of acquisition. All shares purchased under the NCIB will
be cancelled. Purchases of Class A Shares may commence on February
9, 2010 and will expire on the earlier of February 8, 2011 or the
date on which the Company has either acquired the maximum number of
Class A Shares allowable under the NCIB or otherwise decided not to
make any further repurchases under the NCIB. Under the terms of its
NCIB that commenced on February 9, 2009 and will expire on February
8, 2010, the Company had purchased, as of January 25, 2010, an
aggregate of 24,734,320 Class A Shares for cancellation. These
purchases were made through the facilities of the TSX at a weighted
average purchase price, as of January 25, 2010, of $12.33. About
CGI Founded in 1976, CGI Group Inc. is one of the largest
independent information technology and business process services
firms in the world. CGI and its affiliated companies employ
approximately 26,000 professionals. CGI provides end-to-end IT and
business process services to clients worldwide from offices in
Canada, the United States, Europe and Asia Pacific as well as from
centers of excellence in North America, Europe and India. As at
December 31, 2009, CGI's order backlog was $11.4 billion. CGI
shares are listed on the TSX (GIB.A) and the NYSE (GIB) and are
included in the S&P/TSX Composite Index as well as the
S&P/TSX Capped Information Technology and MidCap Indices.
Website: http://www.cgi.com/. CGI Forward-Looking Statements All
statements in this press release that do not directly and
exclusively relate to historical facts constitute "forward-looking
statements" within the meaning of that term in Section 27A of the
United States Securities Act of 1933, as amended, and Section 21E
of the United States Securities Exchange Act of 1934, as amended,
and are "forward-looking information" within the meaning of
Canadian securities laws. These statements and this information
represent CGI's intentions, plans, expectations and beliefs, and
are subject to risks, uncertainties and other factors, of which
many are beyond the control of the Company. These factors could
cause actual results to differ materially from such forward-looking
statements or forward-looking information. These factors include
but are not restricted to: the timing and size of new contracts;
acquisitions and other corporate developments; the ability to
attract and retain qualified members; market competition in the
rapidly evolving IT industry; general economic and business
conditions; foreign exchange and other risks identified in the
press release, in CGI's Annual Report on Form 40-F filed with the
U.S. Securities and Exchange Commission (filed on EDGAR at
http://www.sec.gov/), the Company's Annual Information Form filed
with the Canadian securities authorities (filed on SEDAR at
http://www.sedar.com/), as well as assumptions regarding the
foregoing. The words "believe," "estimate," "expect," "intend,"
"anticipate," "foresee," "plan," and similar expressions and
variations thereof, identify certain of such forward-looking
statements or forward-looking information, which speak only as of
the date on which they are made. In particular, statements relating
to future performance are forward-looking statements and
forward-looking information. CGI disclaims any intention or
obligation to publicly update or revise any forward-looking
statements or forward-looking information, whether as a result of
new information, future events or otherwise, except as required by
applicable law. Readers are cautioned not to place undue reliance
on these forward-looking statements or on this forward-looking
information. You will find more information about the risks that
could cause our actual results to differ significantly from our
current expectations in the Risks and Uncertainties section.
DATASOURCE: CGI GROUP INC. CONTACT: Lorne Gorber, Vice-President,
Global Communications and Investor Relations, (514) 841-3355,
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