Quebecor to repurchase remaining stake from Caisse in $1.69bn deal
Montreal-based Quebecor has announced that it has agreed to buyout the remaining 18.47% stake in Quebecor Media that it does not own from pension fund company la Caisse de dépôt in a deal valued at $1.69bn.
The deal will see la Caisse receiving $1.54bn in cash and $150mn in Quebecor class-B shares.
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“The complete repurchase of the shares today reflects Quebecor’s solid financial position and allows la Caisse to reallocate this capital to new investment opportunities in Quebec companies,” said Michael Sabia, President and CEO of la Caisse.
The share repurchase comes off the back of a strong year for Quebecor, having reported a profit of $56.7mn, up from $3.9mn a year earlier.
“Thanks to its currently very favourable financial profile and the substantial amount of cash it has on hand, Quebecor is now in a position to complete the repurchase of the share capital of Quebecor Media initiated in 2012,” said Pierre Karl Péladeau, President and Chief Executive Officer of Quebecor. “By gaining access to 100% of the cash flows that it generates, Quebecor will now be better equipped to seize business opportunities that arise.”
The agreement will complete the communications company’s share repurchase program that was first announced in October 2012, with the end goal being to ultimately own the entirety of Quebecor Media.