Canadian National announced plans to repurchase up to 1.8 million of its common shares of stock as part of a repurchase program.
The railroad in a statement said the purchase will form part of the Normal Course Issuer Bid for up to 33 million shares announced Oct. 25, 2016.
The Montreal-based company said it will enter into an agreement with a third party to repurchase common shares through daily purchases following completion of a previous agreement to May 5, 2017, subject to a maximum of 1,800,000 common shares.
The third party will purchase CN's common shares on the open market, andCN will then buy the shares at a negotiated price discounted to the market price on the Toronto Stock Exchange at the time.
Those shares will then be cancelled upon purchase by CN.