Loblaw plans to raise EQB stake after PC deal
Under the plan, Loblaw’s broker is authorised to purchase EQB common shares within parameters set by Loblaw during windows when the company holds no material non-public information about EQB.
From grocery giant to bank shareholder
Loblaw received 7,237,601 EQB common shares and $234.5 million in cash on July 1, when EQB closed its $800 million acquisition of President’s Choice Financial from Loblaw. Including the 1,220,000 shares acquired before the transaction closed, Loblaw’s pre-ASPP holdings totalled 8,457,601 EQB shares.
The ASPP permits Loblaw’s broker to accumulate additional shares up to an aggregate cap of 10.6 million, or 24.9% of shares outstanding, whichever is lower, at which point the plan terminates unless wound down earlier.
Loblaw may also buy EQB shares on a discretionary basis outside the ASPP, to the extent permitted by applicable law.
The Ontario Securities Commission (OSC), acting as principal regulator, granted exemptive relief so that the 7,237,601 shares issued at the July 1 closing would be excluded from the 12-month look-back calculation applied to normal-course market purchases. That’s a technical concession designed to prevent routine buying from triggering standard market-purchase restrictions.
