Dorel Industries, the corporate giant that owns a range of sports and leisure brands alongside baby products and home furnishings, is to undertake a share repurchase programme known as a ‘normal course issuer bid’.
Dorel which owns triathlon related brands such as Cannondale, GT, SUGOI Performance Apparel and Schwinn shall repurchase Class B shares over the 12 months between 20 March 2009 and 19 March 2010.
The 1,458,624 Class B shares covered by the programme represent 5% of Dorel’s issued and outstanding Class B Subordinate Voting Shares. The purchases by Dorel will take place through the facilities of the Toronto Stock Exchange and will be made at the market price at the time of the purchase.
In an official statement the company said Dorel’s board of directors feels that the underlying value of the company may not be reflected in the market price of its Class B shares during the term of the normal course issuer bid [the next 12 months].
The board therefore ‘concluded that the repurchase of shares at certain market prices may constitute an appropriate use of financial resources and be beneficial to Dorel and its shareholders.’
