TVA Group Offers to Buy Back up to 13% of Stock
TVA Group Inc., owner of Quebec's most popular French-language television network, launched an offer on Thursday to buy back up to 13.36 percent of its class B non-voting shares.
The Montreal-based firm, which is controlled by Quebecor Inc., said it would buy up to 3.5 million shares for not more than C$22 per share and not less than C$19.50 per share. TVA Group has 26.2 million class B shares issued and outstanding.
The offer, which will expire on June 29 unless extended, will be done through a "modified Dutch auction" which allows shareholders to deposit shares at a price within the range at which they would be willing to sell.
Shareholders who deposit their shares at prices equal to or lower than the purchase price will receive the purchase price. All shares deposited at a higher price will be returned to shareholders.
TVA said it believes repurchasing the stock is an appropriate use of funds and that it is undervalued.
TVA's class B non-voting stock rose 85 Canadian cents, or 4 percent, or C$20.35 on volume of more than 14,000.