Industrial Alliance Insurance and Financial Services Inc. said late Tuesday it will buy back about 1.78 million shares used to close its $214 million deal for Clarington Corp.

The insurer said it will use its normal-course buyback program gradually to minimize share dilution.

“The repurchasing of shares will be conducted as quickly as possible according to internal company policies, market conditions, and subject to the 2% month limitation imposed by the Toronto Stock Exchange,” Industrial Alliance said in a news release.

Industrial Alliance also announced that it has taken up 444,250 additional common shares of Clarington deposited during the extension of its purchase offer.

The company said it has acquired 98.24% of Clarington’s stock in an extended takeover offer that expired Tuesday. It can now take up the rest of the shares in the bid valued at $15 a share.

The proportion of Industrial Alliance shares requested in exchange for Clarington shares exceeded the maximum of 25% of the purchase price, so Clarington stockholders who deposited shares during the extension period will receive 56.99% of the Industrial Alliance shares they requested.