Liquid Shareholders: GLENTEL Bids to Purchase 500,000 of its Common Shares

Wireless retailer and telecommunications service provider, GLENTEL (TSX:GLN) received acceptance from the Toronto Stock Exchange to renew its bid to purchase up to 500,000 of the company’s outstanding Common Shares. While the move depends on future price movements and other factors, according to GLENTEL’s board of directors, the purchase of these shares may represent a desirable use of a portion of its available funds. The bright side for shareholders looking to sell is the prospect of increased liquidity, whereas the remaining shareholders could benefit from the increased value of their interests.

The bid comes on the heels of a previous bid that saw GLENTEL repurchase 35,100 common shares at a weighted average price of $15.64 in the last twelve months. At the time of the release of this article, the GLN shares are trading at $22.90. The Company will be restricted to a daily repurchase maximum of 3,106 common shares, which represents a quarter of the average daily trading volume 12,425 common shares.

It appears that shares will be purchased at the market price at the time of purchase and will be purchased on behalf of GLENTEL by a registered investment dealer through the facilities of the TSX or other Canadian market places. The funding for any purchase of Common Shares pursuant to the NCIB will come from a pool of working capital from GLENTEL.

GLENTEL’s operations comprise three divisions: Retail Canada, Retail U.S. and Business. The company services thousands of consumers and commercial communications customers, operating more than 310 stores across Canada located primarily in retail malls and Costco Wholesale, as well as more than 190 stores in the United States. GLENTEL’s wares include wireless service, rental equipment, satellite and terrestrial network systems, tower sites, and wireless asset monitoring.

The company is currently the largest multi-carrier mobile phone retailer in Canada, operating its businesses under the trading names Glentel Wireless, WIRELESSWAVE, WAVE SANS FIL, Tbooth wireless, la cabine T sans fil, WIRELESS etc., SANS FIL etc., and Mac Station, as well as Diamond Wireless - Verizon Premium Retailer in the U.S.

Geoff Woade
VantageWire

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