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LAVAL, Quebec -- The Toronto Stock Exchange has approved a new share repurchase program for Alimentation Couche-Tard Inc. The company said it is now authorized to repurchase up to 2,685,335 Class A multiple voting shares -- representing 5 percent of the Class A multiple voting shares issued and outstanding -- and 11,621,801 Class B subordinate voting shares -- representing 10 percent of the Class B subordinate voting shares of the public float -- as of Oct. 20.
The net average daily trading volume for the six-month period preceding Oct. 20 represents 1,073 Class A multiple voting shares, and 334,488 Class B subordinate voting shares. In accordance with Toronto Stock Exchange requirements, a maximum daily repurchase of 25 percent of these averages or 1,000 shares (whichever is greater) may be made, representing a total of 1,000 Class A multiple voting shares and a total of 83,622 Class B subordinate voting shares, the convenience store chain reported in a news release.
By making such repurchases, Couche-Tard stated that the number of Class A multiple voting shares and Class B subordinate voting shares in circulation will be reduced, and the proportionate interest of all remaining shareholders in the share capital of the company will be increased on a pro-rata basis.
The company may repurchase Class A multiple voting shares and Class B subordinate voting shares on the open market through the Toronto Stock Exchange, from time to time, over the course of 12 months starting Oct. 25, 2010 and ending at the latest on Oct. 24, 2011.
All shares repurchased under the program will be cancelled upon their repurchase. In connection with the program, Couche-Tard established an automatic securities purchase plan to provide standard instructions regarding how the company's shares are to be repurchased under the program. Accordingly, the company may repurchase its shares under the automatic plan on any trading day during the program, including during self-imposed trading blackout periods. The automatic plan will commence and should terminate together with the program.
According to the news release issued by Couche-Tard, the retailer has not repurchased shares under its previous share repurchase program, which was announced Aug. 4, 2009.
Couche-Tard is the largest independent c-store operator in North America in terms of number of company-operated stores. Its network includes 5,869 c-stores -- 4,141 of which include motor fuel dispensing -- located in 11 large geographic markets, including eight in the U.S. covering 42 states and the District of Columbia, and three in Canada covering all 10 provinces.