Calian announces normal course issuer bid

Calian announces normal course issuer bid

Calian Group Ltd. (CGY) has announced a normal course issuer bid, a move that reflects the company's strategic focus on its defense and health services divisions. The announcement comes amid growing pressure from activist investor Plantro Ltd., which owns over 5% of Calian's shares and has been advocating for the sale of the company's underperforming IT and cybersecurity division (ITCS) [1].

Calian's defense sector revenue has been growing at a robust 12% year-over-year rate, driven by contracts such as NATO's Joint Warfare Centre support and a $250 million expansion of its Health Care Provider Recruitment (HCPR) contract with the Canadian Department of National Defence [1]. This growth aligns with broader trends in the defense sector, where Canada's accelerated NATO spending commitments and a $41.6 billion projected defense budget by 2030 have created a compelling case for strategic divestiture [3].

The normal course issuer bid, which allows Calian to repurchase its own shares, underscores the company's commitment to shareholder value. The move is also seen as a response to market skepticism about the board's current strategy, as evidenced by a 9% surge in the stock price following Plantro's campaign [1]. By reducing operational complexity and directing resources toward high-margin defense and health services, Calian aims to address these concerns and capitalize on the sector's long-term growth prospects.

In addition to the normal course issuer bid, Calian has been bolstering its defense capabilities through strategic acquisitions and appointments. The company's recent acquisition of Advanced Medical Solutions (AMS) and the appointment of Chris Pogue as President, Defence & Space, signal a strategic pivot toward defense-aligned health services [2]. This move is supported by insider buying, with executives purchasing significant shares in 2025, indicating confidence in the company's strategic direction [4].

References:
[1] Activist Plantro Asks Calian to Sell Amid Defense Tailwinds [https://www.bloomberg.com/news/articles/2025-08-27/activist-plantro-pushes-calian-to-sell-amid-defense-tailwinds]
[2] Calian Reports Results for the Second Quarter [https://www.globenewswire.com/news-release/2025/05/14/3081009/0/en/Calian-Reports-Results-for-the-Second-Quarter.html]
[3] Canada's Surging Defense Spending: A Strategic Investment Opportunity [https://www.ainvest.com/news/canada-surging-defense-spending-strategic-investment-opportunity-defense-industrial-base-2508/]
[4] Calian Group (CGY): Insider Buys Signal Confidence in ... [https://www.ainvest.com/news/calian-group-cgy-insider-buys-signal-confidence-defense-tailwinds-2507/]