Manulife Financial Corp., an international financial services provider, reported Wednesday that it has secured regulatory approval from the Toronto Stock Exchange to buy back for cancellation up to 50 million of its common shares, equivalent to a 2.8 percent stake in the Canadian financial services provider.
Toronto Stock Exchange rules give Manulife one year starting 23 February 2023 to repurchase the target amount of shares in Canada and the US and other places at market price, or at a discount in case of block acquisitions. Repurchased shares will be cancelled.
Aside from Canada, Manulife is also listed in the New York, Hong Kong and in the Philippines.
Manulife said the shares repurchase plan provides it 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.
In addition, Manulife said it intends to repurchase shares in order to mitigate the impact on diluted earnings per share and core earnings per share from a previously announced reinsurance transaction that is expected to close by the end of February 2024.
It said the purchase of the shares will depend on future market conditions.
