CGI Group Inc. Obtains Approval for the Renewal of Its Normal Course Issuer Bid
Share:
Stock Market Symbols GIB.A (TSX) GIB (NYSE)
MONTREAL, Feb. 5 - CGI Group Inc. (TSX: GIB.A; NYSE: GIB) announced today that its Board of Directors has authorized the renewal of its Normal Course Issuer Bid (NCIB) and that such NCIB has received regulatory approval from the Toronto Stock Exchange.
The Company's management and Board of Directors believe that the repurchase of Class A subordinate shares of the Company is a proper use of the Company's funds, and the NCIB will provide the Company with the flexibility to purchase Class A Shares from time to time as the Company considers it advisable, as part of its strategy to increase shareholder value.
At the close of business on January 31, 2008, there were 289,338,015 Class A Shares outstanding of which approximately 98.5% were widely held (representing a public float of 285,029,415 Class A Shares).
Under the terms of the NCIB as approved by the Toronto Stock Exchange:
o the Company may purchase for cancellation on the open market through
the facilities of the TSX up to 28,502,941 Class A Shares, representing
approximately 10% of the Company's public float as of the close of
business on January 31, 2008. All Class A Shares will be purchased at
their market price at the time of acquisition;
o daily repurchases will be limited to 256,584 Class A Shares, being 25%
of the average daily trading volume of the Class A Shares for the past
six months, other than block purchase exemptions; and
o purchases of Class A Shares may commence on February 7, 2008 and will
expire on the earlier of February 6, 2009 or the date on which the
Company has either acquired the maximum number of Class A Shares
allowable under the NCIB or otherwise decided not to make any further
repurchases under the NCIB.
Under the terms of its normal course issuer bid that commenced on February 5, 2007 and expired on February 4, 2008, the Company purchased for cancellation 11,847,700 Class A Shares. These purchases were made through the facilities of the Toronto Stock Exchange at an average purchase price of $10.72601.
About CGI
Founded in 1976, CGI Group Inc. is one of the largest independent information technology and business process services firms in the world. CGI and its affiliated companies employ approximately 26,500 professionals. CGI provides end-to-end IT and business process services to clients worldwide from offices in Canada, the United States, Europe, Asia Pacific as well as from centers of excellence in North America, Europe and India. CGI's annual revenue run rate stands at $3.7 billion and at December 31st, 2007, CGI's order backlog was $12.04 billion. CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB) and are included in the S&P/TSX Composite Index as well as the S&P/TSX Capped Information Technology and MidCap Indices. Website: www.cgi.com.
Source: CGI GROUP INC.
CONTACT: Investor Relations: Lorne Gorber, Vice-President, Global Communications and Investor Relations, lorne.gorber@cgi.com, (514) 841-3355
