MONTREAL,
June 3, 2014 /CNW Telbec/ - The Board
of Directors of SNC-Lavalin Group Inc. (the "Corporation") has
filed a notice to renew, for a 12-month period, its normal course
issuer bid, which will expire on June 3,
2014. In the notice, the Corporation states that a maximum
of 3,000,000 Common Shares, representing less than 2% of the issued
and outstanding Common Shares as of May 14,
2014, may be purchased for cancellation. As of May 14, 2014, the Corporation had 152,137,920
Common Shares issued and outstanding, 136,059,656 of which made up
the public float. The Corporation believes that in the appropriate
circumstances, the purchase of Common Shares may be an effective
use of its funds and in the best interest of the Corporation and
its shareholders. The Corporation may make purchases to offset
dilution arising from the issuance of Common Shares under
security-based compensation arrangements of the Corporation or for
other corporate purposes.
These purchases are to be made through the
facilities of the Toronto Stock
Exchange and/or alternative trading systems, in accordance with the
Toronto Stock Exchange's policy on normal course issuer bids. The
price the Corporation will pay for any Common Shares will be the
market price at the time of acquisition, plus brokerage fees.
Purchases may commence on June 5,
2014 and will terminate no later than June 4, 2015. Certain directors and senior
officers of the Corporation may sell securities of the Corporation
during the course of the normal course issuer bid.
During the period that the normal course issuer
bid is outstanding, the Corporation does not intend to make
purchases of its Common Shares other than by means of open market
transactions or such other means as may be permitted by the Toronto
Stock Exchange and securities regulatory authorities from time to
time and as applicable, including block purchases of Common
Shares.
The average daily trading volume of the
Corporation's Common Shares through the facilities of the Toronto
Stock Exchange over the last six completed calendar months was
314,151 ("ADTV"). Accordingly, under the Toronto Stock Exchange
Rules and policies, the Corporation is entitled on any trading day
to purchase up to 25% of the ADTV, which totals 78,537 Common
Shares, for the next 12-month period of the Normal Course Issuer
Bid. In excess of the daily 78,537 repurchase limit, the
Corporation may also purchase, once a week, a block of Common
Shares not owned by any insiders, which may exceed such daily
limit, in accordance with the Toronto Stock Exchange Rules.
During the period from June 4, 2013 to May 14,
2014 inclusively, the Corporation did not purchase any of
its outstanding Common Shares.
SNC-Lavalin Inc. (TSX: SNC) is one of the
leading engineering and construction groups in the world, and is a
major player in the ownership of infrastructure and in the
provision of operations and maintenance services. Founded in 1911,
SNC-Lavalin has offices across Canada and in over 40 other countries around
the world, and is currently active in some 100 countries.
www.snclavalin.com
Reference in this press release, and hereafter, to the
"Company" or to "SNC-Lavalin" means, as the context may require,
SNC-Lavalin Group Inc. and all or some of its subsidiaries or joint
arrangements, or SNC-Lavalin Group Inc. or one or more of its
subsidiaries or joint arrangements.
Statements made in this press release that describe the Company's
or management's budgets, estimates, expectations, forecasts,
objectives, predictions, projections of the future or strategies
may be "forward-looking statements", which can be identified by the
use of the conditional or forward-looking terminology such as
"aims", "anticipates", "assumes", "believes", "estimates",
"expects", "goal", "intends", "may", "plans", "projects", "should",
"will", or the negative thereof or other variations thereon.
Forward-looking statements also include any other statements that
do not refer to historical facts. All such forward-looking
statements are made pursuant to the "safe-harbour" provisions of
applicable Canadian securities laws. The Company cautions that, by
their nature, forward-looking statements involve risks and
uncertainties, and that its actual actions and/or results could
differ materially from those expressed or implied in such
forward-looking statements, or could affect the extent to which a
particular projection materializes. Forward-looking statements are
presented for the purpose of assisting investors and others in
understanding certain key elements of the Company's current
objectives, strategic priorities, expectations and plans, and in
obtaining a better understanding of the Company's business and
anticipated operating environment. Readers are cautioned that such
information may not be appropriate for other purposes.
Forward-looking statements made in this press release are based on
a number of assumptions believed by the Company to be reasonable as
at the date hereof. The assumptions are set out throughout the
Company's 2013 Management's Discussion and Analysis (particularly,
in the sections entitled "Critical Accounting Judgments and Key
Sources of Estimation Uncertainty" and "How We Analyze and Report
our Results" in the Company's 2013 Management's Discussion and
Analysis), as updated in the Company's First Quarter 2014
Management's Discussion and Analysis. If these assumptions are
inaccurate, the Company's actual results could differ materially
from those expressed or implied in such forward-looking statements.
In addition, important risk factors could cause the Company's
assumptions and estimates to be inaccurate and actual results or
events to differ materially from those expressed in or implied by
these forward-looking statements. These risks include, but are not
limited to: (a) the outcome of pending and future claims and
litigation could have a material adverse impact on the Company's
business, financial condition and results of operation; (b) the
Company is subject to ongoing investigations which could subject
the Company to criminal and administrative enforcement actions,
civil actions and sanctions, fines and other penalties, some of
which may be significant, which, in turn, could harm the Company's
reputation, result in suspension, prohibition or debarment of the
Company from participating in certain projects, reduce its revenues
and net income and adversely affect its business; (c) further
regulatory developments could have a significant adverse impact on
the Company's results, and employee, agent or partner misconduct or
failure to comply with anti-bribery and other government laws and
regulations could harm the Company's reputation, reduce its
revenues and net income, and subject the Company to criminal and
administrative enforcement actions and civil actions;(d) if the
Company is not able to successfully execute on its new strategic
plan, its business and results of operations would be adversely
affected; (e) a negative impact on the Company's public image could
influence its ability to obtain future projects; (f) fixed-price
contracts or the Company's failure to meet contractual schedule or
performance requirements may increase the volatility and
unpredictability of its revenue and profitability; (g) the
Company's revenue and profitability are largely dependent on the
awarding of new contracts, which it does not directly control, and
the uncertainty of contract award timing could have an adverse
effect on the Company's ability to match its workforce size with
its contract needs; (h) the Company's backlog is subject to
unexpected adjustments and cancellations, including under
"termination for convenience" provisions, and does not represent a
guarantee of the Company's future revenues or profitability; (i)
SNC-Lavalin is a provider of services to government agencies and is
exposed to risks associated with government contracting; (j) the
Company's international operations are exposed to various risks and
uncertainties, including unfavourable political environments, weak
foreign economies and the exposure to foreign currency risk; (k)
there are risks associated with the Company's ownership interests
in ICI that could adversely affect it; (l) the Company is dependent
on third parties to complete many of its contracts; (m) the
Company's use of joint ventures and partnerships exposes it to
risks and uncertainties, many of which are outside of the Company's
control; (n) the competitive nature of the markets in which the
Company does business could adversely affect it; (o) the Company's
project execution activities may result in professional liability
or liability for faulty services; (p) the Company could be subject
to monetary damages and penalties in connection with professional
and engineering reports and opinions that it provides; (q) the
Company may not have in place sufficient insurance coverage to
satisfy its needs; (r) the Company's employees work on projects
that are inherently dangerous and a failure to maintain a safe work
site could result in significant losses and/or an inability to
obtain future projects; (s) the Company's failure to attract and
retain qualified personnel could have an adverse effect on its
activities; (t) work stoppages, union negotiations and other labour
matters could adversely affect the Company; (u) the Company relies
on information systems and data in its operations. Failure in the
availability or security of the Company's information systems or in
data security could adversely affect its business and results of
operations; (v) any acquisition or other investment may present
risks or uncertainties; (w) a deterioration or weakening of the
Company's financial position, including its cash net of recourse
debt, would have a material adverse effect on its business and
results of operations; * the Company may have significant working
capital requirements, which if unfunded could negatively impact its
business, financial condition and cash flows; (y) an inability of
SNC-Lavalin's clients to fulfill their obligations on a timely
basis could adversely affect the Company; (z) the Company may be
required to impair certain of its goodwill, and it may also be
required to write down or write off the value of certain of its
assets and investments, either of which could have a material
adverse impact on the Company's results of operations and financial
condition; (aa) global economic conditions could affect the
Company's client base, partners, subcontractors and suppliers and
could materially affect its backlog, revenues, net income and
ability to secure and maintain financing; (bb) fluctuations in
commodity prices may affect clients' investment decisions and
therefore subject the Company to risks of cancellation, delays in
existing work, or changes in the timing and funding of new awards,
and may affect the costs of the Company's projects; (cc) inherent
limitations to the Company's control framework could result in a
material misstatement of financial information, and; (dd)
environmental laws and regulations expose the Company to certain
risks, could increase costs and liabilities and impact demand for
the Company's services. The Company cautions that the foregoing
list of factors is not exhaustive. For more information on risks
and uncertainties, and assumptions that would cause the Company's
actual results to differ from current expectations, please refer to
the sections "Risks and Uncertainties", "How We Analyze and Report
Our Results" and "Critical Accounting Judgments and Key Sources of
Estimation Uncertainty" in the Company's 2013 Management's
Discussion and Analysis, as updated in the Company's First Quarter
2014 Management's Discussion and Analysis.
The forward-looking statements herein reflect the Company's
expectations as at the date of this press release and are subject
to change after this date. The Company does not undertake any
obligation to update publicly or to revise any such forward-looking
statements whether as a result of new information, future events or
otherwise, unless required by applicable legislation or
regulation. |
SOURCE SNC-Lavalin