Celestica Announces TSX Acceptance of Normal Course Issuer Bid

TORONTO, Nov. 19, 2020 (GLOBE NEWSWIRE) -- Celestica Inc. (NYSE: CLS)(TSX: CLS), a leader in design, manufacturing and supply chain solutions for the world's most innovative companies, today announced the Toronto Stock Exchange (the TSX) has accepted the Company's notice to launch a Normal Course Issuer Bid (the Bid).

Under the Bid, the Company may repurchase on the open market (or as otherwise permitted), at its discretion during the period commencing on November 24, 2020 and ending on the earlier of November 23, 2021 and the completion of purchases under the Bid, up to 9,021,320 subordinate voting shares, representing approximately 10% of the "public float" of the subordinate voting shares (within the meaning of the rules of the TSX), subject to the normal terms and limitations of such bids. Under the TSX rules, the average daily trading volume of the subordinate voting shares on the TSX during the six months ended October 31, 2020 was 180,228 and, accordingly, daily purchases on the TSX pursuant to the Bid will be limited to 45,057 subordinate voting shares, other than purchases made pursuant to the block purchase exception. The actual number of subordinate voting shares which may be purchased pursuant to the Bid and the timing of any such purchases will be determined by the management of the Company, subject to applicable law and the rules of the TSX. In accordance with the TSX rules, the maximum number of subordinate voting shares which may be repurchased for cancellation under the Bid will be reduced by the number of subordinate voting shares purchased for delivery pursuant to stock-based compensation plans.

Purchases are expected to be made through the facilities of the New York Stock Exchange and the Toronto Stock Exchange, or such other permitted means (including through alternative trading systems in Canada), at prevailing market prices or as otherwise permitted. The Bid will be funded using existing cash resources and draws on its credit facility, and any subordinate voting shares repurchased by the Company under the Bid will be cancelled.

As of November 13, 2020, the Company had 110,455,664 issued and outstanding subordinate voting shares and a "public float" (within the meaning of the rules of the TSX) of 90,213,203 subordinate voting shares.

The Company believes that the purchases are in the best interest of the Company and constitute a desirable use of its funds.

The Company previously implemented a normal course issuer bid for its subordinate voting shares which expired on December 18, 2019. Under its prior bid, the Company was authorized to purchase up to 9,490,802 subordinate voting shares and repurchased and cancelled 8,260,380 subordinate voting shares at a weighted average price of US$8.15 per share. In the past 12 months, the Company repurchased 3,628,537 subordinate voting shares for delivery pursuant to the Company's stock-based compensation plans.