Bombardier completes sale of ۳۰% stake in Transportation business

TIN news:   Pension and insurance investor Caisse de Dépôt et Placement du Québec’s US$1·5bn purchase of a 30% stake in Bombardier’s Transportation business was completed on February 11.
This follows regulatory approval for the deal which had been announced last November. CPDQ has acquired a 30% stake in Bombardier Transportation (Investment) UK Ltd, known as BT Holdco, which has been set up as holding company for all of the assets of the Transportation business.
Bombardier is to use the proceeds for general corporate purposes, and said completion of the transaction ‘crystallises the value of Bombardier Transportation’ and strengthens the group’s financial position with no increase in debt.
Concurrently with the closing of the acquisition, Bombardier issued CDPQ with warrants exercisable for a total of 105 851 872 Class B subordinate voting shares in the capital of Bombardier. The warrants are exercisable for seven years at US$1·66 per share.