The Toronto Stock Exchange and the Office of the Superintendent of Financial Institutions authorized Sun Life Financial Inc.'s plan to launch a normal course issuer bid to purchase for cancellation up to 15 million common shares, which represent about 2.54% of the 591,039,889 common shares issued and outstanding as of July 31.
The normal course issuer bid will start Aug. 14 and end Aug. 13, 2020, or at an earlier date determined by the company or as the company completes its purchases pursuant to the issuer bid.
As per the Toronto Stock Exchange's rules, the company may purchase up to 25% of 1,573,407 common shares each trading day, subject to the market's rules concerning block purchases. The 1,573,407 common shares were the average daily trading volume on the stock exchange for the six months ending July 31.
Also, the company established an automatic repurchase plan with its designated broker for the facilitation of purchases of common shares under the normal course issuer bid. Under the plan, the broker may purchase shares at times when Sun Life ordinarily would not be active in the market.
Under its current normal course issuer bid, which expires Aug. 13, Sun Life is authorized to purchase for cancellation up to 18 million common shares. As of Aug. 7, the company has bought 16,707,450 common shares for cancellation at a volume-weighted average price of about C$50.41 per common share.