C$ unless otherwise stated
TSX/NYSE/PSE: MFC
SEHK: 945
TORONTO, Nov. 12, 2019 /CNW/ - Manulife Financial
Corporation ("Manulife") announced today that it has received
approval from the Toronto Stock Exchange ("TSX") for its previously
announced normal course issuer bid ("NCIB") permitting the purchase
for cancellation of up to 58 million of its common shares,
representing approximately 3% of Manulife's issued and
outstanding common shares. As at October 31,
2019, Manulife had 1,948,859,681 common shares issued and
outstanding. The Office of the Superintendent of Financial
Institutions Canada previously approved the NCIB. Under the NCIB,
Manulife may purchase up to 1,062,993 of its common shares on the
TSX during any trading day, which represents 25% of the average
daily trading volume of 4,251,975 common shares on the TSX for the
six months ended October 31, 2019,
subject to TSX rules permitting block purchases. Purchases under
the NCIB may commence through the TSX on November 14, 2019 and continue until November 13, 2020, when the NCIB
expires, or such earlier date as Manulife completes its
purchases.
Manulife believes that the purchase of Manulife common shares at
recent market prices is an appropriate investment by Manulife
since, in its view, recent market prices do not reflect the
underlying value of Manulife's business. Having an NCIB in place
will provide Manulife with the flexibility to purchase common
shares as part of its capital management strategy which is designed
to maintain healthy regulatory capital ratios while balancing the
objective of generating shareholder value.
Purchases under the NCIB may be made through the facilities of
the TSX, the New York Stock Exchange, and alternative trading
systems in Canada and the United States at market prices prevailing
at the time of purchase or such other price as may be permitted.
All common shares acquired by Manulife under the NCIB will be
cancelled. Repurchases will be subject to compliance with
applicable Canadian securities laws and United States federal securities laws.
Subject to regulatory approval, Manulife may also acquire common
shares directly from other holders by way of private agreement
pursuant to issuer bid exemption orders issued by applicable
securities regulatory authorities. Any private purchase made under
an exemption order issued by a securities regulatory authority will
generally be at a discount to the prevailing market price. Manulife
may also enter into derivative-based programs in support of its
repurchase activities, including the writing of put options and
forward purchase agreements, accelerated share repurchase
transactions, other equity contracts or use other methods of
acquiring shares, in each case subject to regulatory approval and
on such terms and at such times as shall be permitted by applicable
securities laws. The total number of common shares repurchased
under the NCIB and all other potential arrangements will not exceed
58 million common shares.
Manulife has entered into an automatic share repurchase plan
under which its designated broker will repurchase Manulife's common
shares pursuant to the NCIB. The actual number of common shares
purchased under the automatic plan, the timing of such purchases
and the price at which common shares are purchased will depend upon
future market conditions. The automatic plan, which was pre-cleared
by the TSX, provides for the potential repurchase of common shares
at any time, including when Manulife ordinarily would not be active
in the market due to its own internal trading blackout periods,
insider trading rules, or otherwise.
Manulife's current normal course issuer bid ("Current NCIB")
commenced on November 14, 2018, for
the purchase of up to 40 million common shares and was amended
effective February 22, 2019 to
increase the number of common shares that Manulife may repurchase
to up to 99 million shares. The Current NCIB will continue
until November 13, 2019, when it
expires, or such earlier date as Manulife completes its
purchases. As of October 31,
2019, Manulife repurchased 73,510,562 common shares for
cancellation under its Current NCIB, at a volume weighted average
repurchase price per common share of $22.1531. All repurchases were made through the
facilities of the TSX and the CHI-X.
Caution regarding forward-looking statements
This
document contains forward-looking statements within the meaning of
the "safe harbour" provisions of Canadian provincial securities
laws and the U.S. Private Securities Litigation Reform Act of 1995
with respect to possible future purchases by Manulife of its common
shares. Although we believe that the expectations reflected in such
forward-looking statements are reasonable, such statements involve
risks and uncertainties, and undue reliance should not be placed on
such statements. Certain material factors or assumptions are
applied in making forward-looking statements, and actual results
may differ materially from those expressed or implied in such
statements. Important factors that could cause actual common share
repurchases to differ materially from expectations include but are
not limited to the fact that the amount and timing of any future
common share repurchases will depend on the earnings, cash
requirements and financial condition of Manulife, market
conditions, capital requirements (including under LICAT capital
standards), common share issuance requirements, applicable law and
regulations (including Canadian and U.S. securities laws and
Canadian insurance company regulations), and other factors deemed
relevant by Manulife, and may be subject to regulatory approval or
conditions.
Additional information about material risk factors that could
cause actual results to differ materially from expectations may be
found in our most recent annual and interim reports and elsewhere
in our filings with Canadian and U.S. securities regulators.
The forward-looking statements in this document are, unless
otherwise indicated, stated as of the date hereof. We do not
undertake to update any forward-looking statements, except as
required by law.
About Manulife
Manulife Financial Corporation is a
leading international financial services group that helps people
make their decisions easier and lives better. With our global
headquarters in Toronto, we
operate as Manulife across our offices in Canada, Asia,
and Europe, and primarily as
John Hancock in the United States. We provide financial
advice, insurance, as well as wealth and asset management solutions
for individuals, groups and institutions. At the end of 2018, we
had more than 34,000 employees, over 82,000 agents, and thousands
of distribution partners, serving almost 28 million customers. As
of September 30, 2019, we had over
$1.2 trillion (US$881 billion) in assets under management and
administration, and in the previous 12 months we made $29.8 billion in payments to our customers. Our
principal operations in Asia,
Canada and the United States are where we have served
customers for more than 100 years. We trade as 'MFC' on the
Toronto, New York, and the Philippine stock exchanges
and under '945' in Hong Kong.
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SOURCE Manulife Financial Corporation