Bombardier to sell $638mn worth of shares
Leading Canadian aerospace manufacturer Bombardier has announced that it will be issuing $638mn worth of shares in the aim of raising equity to aid its five-year turnaround plan.
This will see the listing of 168mn Class B Shares on the Toronto Stock Exchange at $3.80 per share, with the total price representing a 4% discount on its current stock price.
Having considered bankruptcy in 2015, Bombardier is in the middle of its extensive financial turnaround plan.
This recently came under pressure after the US, off the back of complaints from Boeing, looked to implement crippling 300% tariffs on the company’s CSeries jets within the US market.
Further, the company’s finances were also strained after its CSeries jets came to market two years behind schedule and $2bn over budget, whilst elsewhere the company also failed to secure a merger of its rail business with Siemens AG’s operations, despite months of negotiations.
However, having since sold the majority stake in its CSeries unit to Airbus and had the tariffs dismissed by the International Trade Commission (ITC), the company’s financial turnaround is seemingly back on track, with this equity financing being used to further balance the company’s books.