Olympia Financial Group Inc.
TSX : OLY

Olympia Financial Group Inc.

September 08, 2015 18:00 ET

Olympia Financial Group Inc. Announces Repurchase of Shares

CALGARY, ALBERTA--(Marketwired - Sept. 8, 2015) - Olympia Financial Group Inc. (TSX:OLY) advises that it has agreed to purchase 55,000 common shares of its own issued and outstanding shares for $1,294,700 from Target Capital Inc. ("Target"), an affiliate of OFGI. The common shares are being repurchased at a price equal to $23.54 per share, being the last price at which the OFGI shares were traded on the Toronto Stock Exchange. The shares are being purchased from Target pursuant to an exemption from the formal issuer bid requirements (the exemption provides that the shares must be acquired for a price not greater than market value and the number of shares acquired must not exceed 5% of the issued shares in any 12 month period). It is anticipated that the share repurchase will be completed on or before September 11, 2015.

OFGI's repurchase of 55,000 common shares from Target is a related party transaction as OFGI and Target are both controlled by Rick Skauge and the two companies share four common directors (being Rick Skauge, Craig Skauge, Brian Newman and Gerard Janssen). In order to ensure that the transaction was independently considered, all conflicted members of the OFGI Board abstained from voting to approve the share repurchase, whereby the transaction was approved by Tony Lanzl being the only independent OFGI director that is not on the Target Board. The non-conflicted and independent OFGI Board member, along with independent OFGI management, agreed that this share repurchase was in the best interests of the OFGI shareholders given the current trading price and the current dividend rate. As OFGI pays a current annual dividend of $2.60 per share (a yield of 11% based on a $23.54 price per share) and has an undrawn line of credit having an interest rate per annum equal to the prime rate (currently 2.75%), OFGI believes that the acquisition of its own shares at the current price is accretive for all OFGI shareholders.

About Olympia Financial Group Inc.

Olympia Financial Group Inc. ("OFGI") conducts most of its operations through its wholly- owned subsidiary Olympia Trust Company, a non-deposit taking trust company. Olympia Trust Company is licensed to conduct trust activities in Alberta, British Columbia, Saskatchewan, Manitoba, Quebec, Newfoundland and Labrador, Prince Edward Island, New Brunswick and Nova Scotia. Olympia Trust Company administers self-directed registered accounts and offers foreign currency exchange services. OFGI also offers private health services plans through its wholly-owned subsidiary Olympia Benefits Inc. and operates an ATM business through its wholly-owned subsidiary Olympia ATM Inc.

OFGI's common shares are listed on the Toronto Stock Exchange under the symbol "OLY".

Contact Information

  • Olympia Financial Group Inc.
    Rick Skauge
    President and Chief Executive Officer
    (403) 261-0900

    Olympia Financial Group Inc.
    Gerhard Barnard
    Vice-President, Finance and Chief Financial Officer
    (403) 261-0900
    (403) 265-1455 (FAX)