Analyst Summary
- GFL Environmental Inc. obtained exemptive relief from the Ontario Securities Commission (OSC) to repurchase subordinate voting shares from underwriters in Ontario of any secondary offering.
- The Order permits GFL to purchase up to 50% of the Shares initially offered for resale pursuant to any such offering over the next 12 months, up to a maximum of 38,157,045 Shares, representing 10% of its current issued and outstanding Shares.
- A special committee of independent directors of the Company will oversee any purchases made in reliance on the Order to ensure such purchases, when made, are in the best interests of the Company.
- All such purchases will be at a discount to the closing price of the Shares on the TSX and NYSE on the date the associated offering is first announced.
- GFL intends to use approximately $2.25 billion of the proceeds from the recent sale of its Environmental Services business to opportunistically repurchase Shares, subject to market conditions.
Potential Implications
Stock Price
- The ability to repurchase shares could positively influence the stock price, especially if the repurchases are made at a discount to the market price.
- The market’s reaction to the announcement of the share repurchase program and the terms of the Order could impact the stock price.