2013-02-12 19:02:04 -
TORONTO, ONTARIO -- (Marketwire) -- 02/12/13 -- Just Energy Group Inc. ("Just Energy") (TSX:JE)(NYSE:JE) announced today that the Toronto Stock Exchange has accepted a notice filed by Just Energy of its intention to make a normal course issuer bid to purchase its common shares (the "Shares").
The notice provides that Just Energy may, during the 12 month period commencing February 14, 2013 and ending February 13, 2014, purchase on the Toronto Stock Exchange as well as alternative trading systems up to 10,000,000 Shares in total, being 7.4% of the "public float" of Shares. The aggregate number of Shares that Just Energy may purchase during any trading day will not exceed 107,182 Shares, being approximately 25% of the average daily trading volume of the Shares based on the trading volume on the TSX for the most recently completed six calendar months preceding the date of the Notice of Intention (i.e. 428,730 Shares), subject to Just Energy's ability to make block purchases through the facilities of the TSX in accordance with the TSX rules. Any Shares purchased pursuant to this normal course issuer bid will be cancelled by Just Energy. The price that Just Energy will pay for any Shares will be the market price at the time of acquisition. The actual number of Shares which may be purchased and the timing of any such purchases will be determined by Just Energy. At February 4, 2013 there were 141,283,767 Shares of Just Energy outstanding.
Just Energy purchased 84,100 shares ($11.33 average share price) pursuant to its previous NCIB, which terminated on December 15, 2012.
Just Energy's management believes that the Shares have been trading in a price range which does not adequately reflect their value in relation to Just Energy's business and its future business prospects. Depending upon future price movements and other factors, Just Energy believes that Just Energy's outstanding Shares represent an attractive investment and a desirable use of a portion of its available funds.
Executive Chair Rebecca MacDonald stated: "It is management's view that the volatile trading following the announcement of our dividend reduction from $1.24 annually per share ($0.10333 per month) to $0.84 annually per share ($0.07 per month) may create an opportunity to acquire shares at a price which we believe to be significantly less than fair value. A normal course issuer bid allows us to do so on an efficient basis."
"Based on future growth and a future annual $0.84 dividend commencing with the monthly payment on April 30, 2013, we believe that our share price is and may remain undervalued. We believe Just Energy will be able to continue to show growth during the foreseeable future and continue to believe our growth will meet or exceed our corporate objectives" stated Chief Executive Officer Ken Hartwick. "Because of the financial performance of the business and the reduced dividend, we will generate sufficient funds both to support future growth, to repay our debt as it matures improving our balance sheet and utilize remaining funds to institute a share buy back program."
Just Energy Group Inc.
Established in 1997, Just Energy is primarily a competitive retailer of natural gas and electricity. With offices located across the United States, Canada and, commencing in July 2012, the United Kingdom, Just Energy serves close to 2 million residential and commercial customers through a wide range of energy programs and home comfort services, including fixed-price or price-protected energy program contracts, the rental of water heaters, furnaces and air conditioners and the installation of solar panels. The Company's JustGreen® products provide consumers with the ability to help them reduce the environmental impact of their everyday energy use. Just Energy is the parent to Amigo Energy, Commerce Energy, Hudson Energy, Hudson Energy Solar, National Home Services, Momentis, Tara Energy and Terra Grain Fuels.
Just Energy's press releases may contain forward-looking statements including statements pertaining to customer revenues and margins, customer additions and renewals, customer attrition, customer consumption levels, general and administrative expenses, dividends, distributable cash and treatment under governmental regulatory regimes. These statements are based on current expectations that involve a number of risks and uncertainties which could cause actual results to differ from those anticipated. These risks include, but are not limited to, levels of customer natural gas and electricity consumption, rates of customer additions and renewals, rates of customer attrition, fluctuations in natural gas and electricity prices, changes in regulatory regimes and decisions by regulatory authorities, competition and dependence on certain suppliers. Additional information on these and other factors that could affect Just Energy's operations, financial results or dividend levels are included in Just Energy's annual information form and other reports on file with Canadian securities regulatory authorities which can be accessed through the SEDAR website at www.sedar.com, on the U.S. Securities Exchange Commission's website at www.sec.gov : www.sec.gov or through Just Energy's website at www.justenergygroup.com.
Neither the Toronto Stock Exchange nor the New York Stock Exchange has approved nor disapproved of the information contained herein.
Just Energy Group Inc.
Ms. Beth Summers, C.A.
Chief Financial Officer
(617) 897-1532 Michael.Cummings@FTIConsulting.com
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