Dorel News

Dorel Industries Inc. renews normal course issuer bid

Montreal, Quebec - 5/12/2014

Dorel Industries Inc. (TSX: DII.B, DII.A) announces that it has renewed its normal course issuer bid.  Under the renewed normal course issuer bid, Dorel will be entitled to repurchase for cancellation up to 500,000 Class B Subordinate Voting Shares over a twelve-month period commencing May 14, 2014 and ending May 13, 2015, representing approximately 1.8% of Dorel’s issued and outstanding Class B Subordinate Voting Shares.  The purchases by Dorel will be effected through the facilities of the Toronto Stock Exchange and will be made at the market price of the Class B Subordinate Voting Shares at the time of the purchase.  As at May 5, 2014, there were 28,095,947 Dorel Class B Subordinate Voting Shares issued and outstanding.

During the most recently-completed six months, the average daily trading volume for the Class B Subordinate Voting Shares of Dorel on the Toronto Stock Exchange was 29,927 shares.  Consequently, under the policies of the Toronto Stock Exchange, Dorel will have the right to repurchase during any one trading day a maximum of 7,481 Class B Subordinate Voting Shares, representing 25% of the average daily trading volume.  In addition, Dorel may make, once per calendar week, a block purchase (as such term is defined in the TSX Company Manual) of Class B Subordinate Voting Shares not directly or indirectly owned by insiders of Dorel, in accordance with the policies of the Toronto Stock Exchange.

The Board of Directors of Dorel considers that the underlying value of Dorel may not be reflected in the market price of its Class B Subordinate Voting Shares at certain times during the term of the normal course issuer bid.  The Board has therefore concluded that the repurchase of shares at certain market prices may constitute an appropriate use of financial resources and be beneficial to Dorel and its shareholders.

Any purchases made pursuant to the renewed normal course issuer bid will be made in accordance with the requirements of the Toronto Stock Exchange.  Dorel will make no purchases of Class B Subordinate Voting Shares other than open market purchases during the period of the renewed normal course issuer bid.  To the knowledge of Dorel, no director or officer of Dorel intends to sell Dorel shares while the renewed normal course issuer bid is in effect.

In addition, Dorel has entered into an automatic share purchase plan with CIBC World Markets Inc. in connection with the renewed normal course issuer bid.  Under the plan, CIBC may acquire, at its discretion, Class B Subordinate Voting Shares on Dorel’s behalf during certain “black-out” periods, subject to certain parameters as to price and number of shares.

Dorel purchased a total of 10,000 Class B Subordinate Voting Shares at a weighted average price of $33.07 during its previous normal course issuer bid, which expired on May 1, 2014.

The renewal of Dorel’s normal course issuer bid has been approved by the Toronto Stock Exchange