CDPQ becomes Alstom’s largest shareholder following the announced acquisition of Bombardier Transportation

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As part of Alstom’s proposed acquisition of Bombardier Transportation, Caisse de dépôt et placement du Québec (CDPQ) today announced the conclusion of an agreement with Alstom to convert its current investment in Bombardier Transportation into shares of Alstom. CDPQ also announced an additional investment of €700 million in Alstom. CDPQ’s total investment will range from €2.63B to €2.78B, depending on closing conditions. Alstom shares will be acquired by CDPQ at €44.45 per share. With this transaction, CDPQ will become the largest shareholder of the new Alstom, with a stake of around 18% in the company, depending on financing and closing conditions. As such, CDPQ will appoint two representatives to sit on the company’s Board of Directors as well as a Board observer. The transaction announced today is the result of a thorough analysis and discussions that started several months ago. false false false The value of CDPQ’s holdings in Bombardier Transportation, which will be converted into shares of Alstom, reflects the 15% annual return set out in the initial investment structure. In the context of its agreement with CDPQ, Alstom also announced its intention to strengthen its presence in Québec through ambitious commitments that will be implemented in the first year following the transaction’s closing. These commitments include establishing the Americas’ headquarters in Greater Montréal, where a Head of the Americas will be based; a new design and engineering centre and centre for high-tech R&D; and the expansion of activities through increased opportunities for the La Pocatière and Sorel-Tracy manufacturing facilities. This transaction is expected to close in the first half of 2021. All the details of the transaction, which is subject to regulatory approval and the closing conditions of the agreement, are available in the news releases issued by Alstom and Bombardier Inc., available here: Alstom Bombardier HSBC acted as financial advisor, and McCarthy Tétrault LLP and Freshfields Bruckhaus Deringer LLP acted as legal advisors to CDPQ in this transaction. Transaction highlights false false false ABOUT CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at June 30, 2019, it held CAD 326.7 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.