Canadian Pacific Kansas City (CPKC) announced on February 27, 2025, that the Toronto Stock Exchange (TSX) has accepted its notice of intention to implement a normal course issuer bid (NCIB). Under this program, CPKC plans to purchase for cancellation up to 37,348,539 common shares, representing approximately four percent of its issued and outstanding common shares as of February 18, 2025.
The NCIB is scheduled to commence on March 3, 2025, and will terminate on March 2, 2026. CPKC President and CEO Keith Creel stated that the new share buyback program reflects the company's success in strengthening its balance sheet and reducing leverage following the combination of Canadian Pacific and Kansas City Southern.
Creel emphasized that CPKC's ability to generate strong free cash flow and its pipeline of growth opportunities provide the confidence to reinstitute the share buyback program. The company is committed to returning cash to shareholders in a disciplined and opportunistic manner, with purchases potentially made through the TSX, NYSE, and alternative trading systems.
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