Alimentation Couche-Tard announced Monday that it has entered into a private agreement with the Caisse de dépôt et placement du Québec (CDPQ) to repurchase for cancellation more than 10.82 million common shares held by the CDPQ at a price of C$64.69 per share.
The total consideration is valued at approximately C$700 million.
Following the repurchase, the CDPQ will hold approximately 41.5 million shares, or about 4.3% of Couche-Tard's total outstanding shares.
Filipe Da Silva, who took over a CFO of Alimentation Couche-Tard in June, believes that this transaction represents a distinct opportunity to create shareholder value. The Laval-based multinational adds that such an opportunity will also allow it to deploy available surplus cash and take advantage of attractive financing rates thanks to its commercial paper programme in the United States.
For her part, Kim Thomassin, senior vice-president and head of Quebec at the CDPQ, says that thanks to this transaction, the CDPQ will monetize part of its investment in order to reinvest it in Quebec businesses, while remaining one of Alimentation Couche-Tard's main shareholders.
The retailer's press release states that the Autorité des marchés financiers (AMF) has granted it an exemption from the rules on takeover bids set out in securities legislation.
Alimentation Couche-Tard has more than 14,400 shops in 25 countries and territories. Approximately 128,000 people work throughout its network.
-with files from Michelle Warren