TORONTO, ONTARIO–Maple Leaf Foods Inc. (TSE:MFI) announced today that it has
filed a Notice of Intention to make a normal course issuer bid with The Toronto
Stock Exchange and that the Exchange has accepted the Notice of Intention.
Under the bid, the Company will have the right to purchase, commencing March 2,
2000, up to a maximum of 3,649,533 of its Voting Common Shares (representing
approximately 5% of its outstanding Voting Common Shares) over the following
twelve months through the facilities of the Exchange. The Company currently has
72,990,664 Voting Common Shares outstanding. Voting Common Shares purchased by
the Company under the bid will be cancelled.
The normal course issuer bid will remain in effect until the earlier of the
date on which the maximum number of Voting Common Shares permitted under the
bid have been purchased, the date the Company provides notice of termination of
the bid, or March 1, 2001.
Mr. Tom P. Muir, Chief Financial Officer of the Company, said: “We consider the
Company’s shares to be undervalued at current market prices based on the
Company’s current earnings and future prospects, and, should their value
decline, they could become an attractive investment for the Company. The
purchase of Voting Common Shares would also offset the dilutive effect of share
issuances on existing shareholders arising from the issue from treasury of
Voting Common Shares under the Company’s Share Option Plan or pursuant to
Maple Leaf Foods Inc. is a leading, global food processing company.
Headquartered in Toronto, the Company employs more than 11,000 people at its
operations across Canada, in the United States, Europe and Asia. Maple Leaf
Foods Inc. had sales of more than $3.5 billion in 1999.