VALCOURT, Que. — BRP Inc. says it will spend up to $350 million to buy back its shares.
The maker of Ski-Doos and Sea-Doos says it plans a "modified Dutch auction" that allows shareholders to tender their shares at a price not less than $94 and not more than $113 per share.
The purchase price to be paid by BRP will be determined when the offer expires and will be based on the number of shares tendered and at what price.
BRP's subordinate voting shares closed at $93.89 on the Toronto Stock Exchange on Monday before the buyback was announced.
BRP says the Beaudier Group, which includes the Beaudoin family holding company and collectively holds 27.7 per cent of BRP's outstanding shares and multiple voting shares, has said it will make tenders in connection with the offer to maintain its proportionate stake in the company.
By buying back its shares, a company spreads profits over fewer shares. That increases its earnings per share, a key ratio used to determine a company's financial health.
This report by The Canadian Press was first published June 15, 2021.
Companies in this story: (TSX:DOO)