Caisse leads purchase of U.S.-based school bus company

The Caisse de dépôt et placement du Québec is leading a group of investors in the acquisition of New Jersey-based school bus company Student Transportation Inc.

The pension fund, along with U.S.-based insurance and investment company Ullico Inc., will purchase all of Student Transportation’s outstanding common shares. Current shareholders will receive US$7.50 per share, which accounts for a 27 per cent premium on the 20-day, volume-weighted average price per common share.

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The Caisse has been one of Student Transportation’s largest shareholders for years, said Macky Tall, the fund’s executive vice-president of infrastructure, in a news release. “This transaction represents a significant new step in our relationship with the company, and we look forward to working with the management team for years to come.”

Student Transportation’s chair and chief executive officer, Denis Gallagher, said the transaction is a good deal for investors. ”This transaction presents a compelling opportunity for our investors to monetize their investment at an attractive price. CDPQ has been invested in our company for 16 years and for most of that time as our largest shareholder.”

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