Montreal, Quebec, Canada, 15 December 2011 -- /PRNewswire/ -- Domtar Corporation (NYSE: UFS) (TSX: UFS) today announced that its board of directors authorized an increase to its share buyback program of CAD 400 million. The original program announced on 05 May 2010, now has an aggregate authorization of CAD 1 billion.
The company has previously repurchased approximately 6.6 million shares of common stock for a total cash consideration of CAD 536 million pursuant to this program. Domtar has returned in excess of CAD 600 million of capital to shareholders through a combination of share repurchases and dividends since May 2010.
"With this additional authorization from the board, we have the flexibility to continue to implement our share repurchase program as a key element of our disciplined capital allocation strategy. Our commitment remains to return a majority of future free cash flow to shareholders," said John D. Williams, president and chief executive officer. "Since the inception of the program in May 2010, we have reduced Domtar's outstanding share count by 15% and we believe such repurchases continue to be an excellent means to return capital to our shareholders."
Under the share buyback program, the company is authorized to repurchase from time to time shares of its outstanding common stock on the open market or in privately negotiated transactions in the United States. The timing and amount of stock repurchases will depend on a variety of factors, including the market conditions as well as corporate and regulatory considerations. The share repurchase program may be suspended, modified, or discontinued at any time. The company has no obligation to repurchase any amount of its common stock under the program. The company intends to make all repurchases in compliance with applicable regulatory guidelines and to administer the plan in accordance with applicable laws, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended.
The company had a total combined number of common stock and exchangeable shares issued and outstanding of 36,805,300 shares on 30 November 2011.
Domtar Corporation (NYSE: UFS) (TSX: UFS) is the largest integrated manufacturer and marketer of uncoated freesheet paper in North America and the second largest in the world, based on production capacity, and is also a manufacturer of papergrade, fluff and specialty pulp. The company designs, manufactures, markets, and distributes a wide range of business, commercial printing, publishing, converting, and specialty papers. Domtar also produces a complete line of incontinence care products and distributes washcloths. Domtar owns and operates Ariva, an extensive network of strategically located paper distribution facilities. The company employs approximately 8800 people. To learn more, visit www.domtar.com.