The Caisse de dépôt et placement du Québec is selling its 17,628,911 remaining shares of Quebecor Media Inc. back to Quebecor Inc. for $1.69 billion, representing 18.47 per cent stake in the company.
The media organization operates broadcasters, publications and an internet access provider among other assets in Quebec. The agreement marks the final chapter in Quebecor’s plan to gain all shares of Quebecor Media held by the Caisse, which it originally announced in October 2012.
“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 chief executive officer of the Caisse, in a press release.
Read: Caisse decreases stake in Quebecor
“Through the convertible debenture, la Caisse maintains an interest in the business, while providing Quebecor with increased financial flexibility to pursue its growth plan. And our long-standing partnership with Quebecor will certainly allow us, in the future, to explore new projects or investment opportunities with the company.”
Quebecor’s president and chief executive officer, Pierre Karl Péladeau, noted the company is proud of what it has been able to achieve in partnership with the Caisse. ”By joining forces and working together on the creation of Quebecor Media, we created a major Quebec group that has become a leader in the fields of telecommunications, entertainment, news media and culture,” he said. ”In doing so, we allowed Quebecers to retain control over their technological and cultural levers, while generating substantial benefits for our entire community.”
With the closing of the agreement, expected June 22, 2018, Quebecor will become the sole owner of Quebecor Media.
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