Manulife announces intention to launch Normal Course Issuer Bid

On February 15, 2023, Manulife Financial Corporation announced its intention to launch a Normal Course Issuer Bid (NCIB) to buy back up to 55.7 million common shares, approximately 3% of its outstanding shares, pending TSX approval.

Rhea-AI Summary

On February 15, 2023, Manulife Financial Corporation announced its intention to launch a Normal Course Issuer Bid (NCIB) to buy back up to 55.7 million common shares, approximately 3% of its outstanding shares, pending TSX approval. This initiative aims to enhance shareholder value while maintaining healthy regulatory capital ratios. The NCIB will allow purchases at market prices, and shares bought back will be cancelled. This follows Manulife's previous NCIB, which ended on February 2, 2023, during which it repurchased 85.8 million shares at an average price of $23.99.

Positive

• Manulife intends to repurchase up to 55.7 million common shares, enhancing shareholder value.
• The previous NCIB resulted in the repurchase of 85.8 million shares, demonstrating ongoing commitment to shareholder returns.

Negative

• None.

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C$ unless otherwise stated                             TSX/NYSE/PSE: MFC     SEHK: 945

TORONTO, Feb. 15, 2023 /PRNewswire/ - Manulife Financial Corporation ("Manulife") announced today that, subject to the approval of the Toronto Stock Exchange ("TSX"), it intends to launch a Normal Course Issuer Bid ("NCIB") permitting the purchase for cancellation of up to 55.7 million of its common shares, representing approximately 3% of Manulife's issued and outstanding common shares. The Office of the Superintendent of Financial Institutions has approved the NCIB. As at February 13, 2023, Manulife had 1,858,214,865 common shares issued and outstanding.

Manulife announces intention to launch Normal Course Issuer Bid

Having an NCIB in place will provide Manulife with the flexibility to purchase common shares as part of its capital management strategy which is designed to maintain healthy regulatory capital ratios while balancing the objective of generating shareholder value.

Purchases under the NCIB may be made through the facilities of the TSX, the New York Stock Exchange, and alternative trading systems in Canada and the United States at market prices prevailing at the time of purchase or such other price as may be permitted. Manulife will file a notice of intention to make an NCIB with the TSX.  The bid period will commence after the TSX has accepted the notice of intention and continue for up to one year. All common shares acquired by Manulife under the NCIB will be cancelled. Repurchases will be subject to compliance with applicable Canadian securities laws and United States federal securities laws.

In addition, Manulife may undertake repurchases of its common shares outside of Canada and the United States in compliance with applicable laws. Subject to regulatory approval, Manulife may also acquire common shares directly from other holders by way of private agreement pursuant to issuer bid exemption orders issued by applicable securities regulatory authorities. Any private purchase made under an exemption order issued by a securities regulatory authority will generally be at a discount to the prevailing market price. Manulife may also enter into derivative-based programs in support of its repurchase activities, including the writing of put options and forward purchase agreements, accelerated share repurchase transactions, other equity contracts or use other methods of acquiring shares, in each case subject to regulatory approval and on such terms and at such times as shall be permitted by applicable securities laws. The total number of common shares repurchased under the NCIB and all other potential arrangements will not exceed 55.7 million common shares.

Subject to regulatory approval, Manulife intends from time to time to enter into pre-defined plans with a registered investment dealer to allow for the repurchase of common shares at times when Manulife ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. Any such plans will be adopted in accordance with applicable Canadian securities laws and United States federal securities laws.

Manulife's most recent normal course issuer bid (the "2022 NCIB") commenced on February 3, 2022, for the purchase of up to 97 million common shares, and expired on February 2, 2023.  Manulife repurchased 85,845,749 common shares for cancellation under the 2022 NCIB, at a volume weighted average repurchase price per common share of $23.99. All repurchases were made through the facilities of the TSX.

Caution regarding forward-looking statements

This document contains forward-looking statements within the meaning of the "safe harbour" provisions of Canadian provincial securities laws and the U.S. Private Securities Litigation Reform Act of 1995 with respect to possible future purchases by Manulife of its common shares. Although we believe that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual common share repurchases to differ materially from expectations include but are not limited to the fact that the amount and timing of any future common share repurchases will depend on the earnings, cash requirements and financial condition of Manulife, market conditions, capital requirements (including under LICAT capital standards), common share issuance requirements, applicable law and regulations (including Canadian and U.S. securities laws and Canadian insurance company regulations), and other factors deemed relevant by Manulife, and may be subject to regulatory approval or conditions.

Additional information about material risk factors that could cause actual results to differ materially from expectations may be found in our most recent annual and interim reports and elsewhere in our filings with Canadian and U.S. securities regulators.

The forward-looking statements in this document are, unless otherwise indicated, stated as of the date hereof. We do not undertake to update any forward-looking statements, except as required by law.

About Manulife

Manulife Financial Corporation is a leading international financial services provider, helping people make their decisions easier and lives better. With our global headquarters in Toronto, Canada, we provide financial advice and insurance, operating as Manulife across Canada, Asia, and Europe, and primarily as John Hancock in the United States. Through Manulife Investment Management, the global brand for our Global Wealth and Asset Management segment, we serve individuals, institutions, and retirement plan members worldwide. At the end of 2022, we had more than 40,000 employees, over 116,000 agents, and thousands of distribution partners, serving over 34 million customers. We trade as 'MFC' on the Toronto, New York, and the Philippine stock exchanges and under '945' in Hong Kong.  

Not all offerings are available in all jurisdictions. For additional information, please visit manulife.com. 

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SOURCE Manulife Financial Corporation

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is Manulife's plan for its Normal Course Issuer Bid announced on February 15, 2023?

Manulife plans to repurchase up to 55.7 million common shares under its Normal Course Issuer Bid, subject to TSX approval.

How many shares did Manulife repurchase in its previous NCIB?

In its previous NCIB, which expired on February 2, 2023, Manulife repurchased 85.8 million common shares.

What percentage of Manulife's outstanding shares does the new NCIB represent?

The new NCIB represents approximately 3% of Manulife's issued and outstanding common shares.

What was the average repurchase price per share during Manulife's last NCIB?

The average repurchase price per share during Manulife's last NCIB was $23.99.