BOUCHERVILLE, QUEBEC--(Marketwire - Nov. 8, 2011) - With the approval of the Toronto Stock Exchange, the Board of Directors of RONA inc. (TSX:RON)(TSX:RON.PR.A) has authorized the Corporation to purchase in the normal course of its activities, from November 11, 2011 to November 10, 2012, up to 11,016,854 common shares, representing 10% of its 110,168,541 public float or 8.4% of its 130,520,489 common shares issued and outstanding on October 31, 2011. Under this issuer bid, the purchases will be made at market prices through the facility of the Toronto Stock Exchange or alternative Canadian trading platforms, in accordance with the requirements of the Toronto Stock Exchange. The common shares thereby purchased will be cancelled. The average daily trading volume of the Corporation's common shares was 185,062 on the Toronto Stock Exchange over the last six completed calendar months (the ADTV). Accordingly, since the Corporation is entitled to purchase up to 25% of the ADTV on any trading day, it can purchase 46,265 common shares per day in addition to block trades in accordance with the Toronto Stock Exchange rules.
In the preceding twelve-month period, the Corporation repurchased 2,230,066 shares for a total consideration of $31.6 million (or a volume weighted average price of $14.17 per share) in order to avoid dilution caused by the issuance of shares relating to the acquisition of Pierceys. Shareholders may obtain a free copy of the documents filed with the Exchange concerning this Bid by writing to the Corporate Secretary of RONA.
"Counting on cash available and free cash flow generation, we believe the purchase of our common shares would represent an effective use of our funds. This buyback program along with the recently announced offers to purchase up to $200 million aggregate principal amount of our outstanding 5.40% Debentures due October 20, 2016 are initiatives intended to optimize our capital structure, improve our return and hence increase shareholder value", commented Dominique Boies, Executive Vice President and Chief Financial Officer of RONA.
RONA is the largest Canadian distributor and retailer of hardware, home renovation and gardening products. RONA operates a network of more than 950 corporate, franchise and affiliate stores of various sizes and formats. With close to 30,000 employees working under its family of banners in every region of Canada and more than 17 million square feet of retail space, the RONA store network generates over $6 billion in annual retail sales. For more information, please visit www.rona.ca.