Bombardier closed the previously-announced acquisition by CDPQ of a USD 1.5 billion convertible share investment in Bombardier Transportation’s newly-created holding company, Bombardier Transportation (Investment) UK LTD (“BT Holdco”). Following the completion of the previously-announced corporate reorganization, BT Holdco owns all of the assets of Bombardier’s Transportation business segment.
Furthermore, concurrently with the closing of the acquisition of a 30% stake in BT Holdco and, as previously announced, Bombardier has issued today to CDPQ warrants exercisable for a total number of 105,851,872 Class B shares (subordinate voting) in the capital of Bombardier. The warrants are exercisable for a period of seven years from the date hereof.
This transaction crystallizes the value of Bombardier Transportation and strengthens Bombardier’s financial position, with no increase in debt. The funds received by BT Holdco from the acquisition will be distributed to Bombardier, which intends to use the proceeds for general corporate purposes.
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