Metro to sell ma­jor­ity of Couche-Tard share­hold­ing

Metro Inc. has agreed to dis­pose of the ma­jor­ity of its share­hold­ing in Ali­men­ta­tion Couche-Tard Inc. in three sep­a­rate agree­ments. Fol­low­ing the trans­ac­tions, Metro will hold 5.11 mil­lion shares of Couche-Tard.

Stockwatch Daily - - FRONT PAGE - Mr. Fran­cois Thibault re­ports

METRO INC. and its wholly owned sub­sidiary, Metro Canada Hold­ings Inc., have en­tered into three sep­a­rate agree­ments to re­al­ize the value of the ma­jor­ity of its hold­ing in Ali­men­ta­tion Couche-Tard Inc.

Metro Hold­ings has agreed to sell to deal­ers led by National Bank Fi­nan­cial Inc. and BMO Cap­i­tal Mar­kets, as bookrun­ners , by way of a bloc trade bought deal, a to­tal of 11,369,599 Class B sub­or­di­nate vot­ing shares of Couche-Tard at a price per share of $57.17 for pro­ceeds of ap­prox­i­mately $650-mil­lion. These shares rep­re­sent ap­prox­i­mately 2.7 per cent of the out­stand­ing Class B sub­or­di­nate vot­ing shares of Couche-Tard and ap­prox­i­mately 2 per cent when com­bined with the Class A mul­ti­ple vot­ing shares of Couche-Tard. This sale will be pre­ceded by the con­ver­sion of 11,369,599 Class A mul­ti­ple vot­ing shares of Couche-Tard cur­rently held by Metro Hold­ings into Class B sub­or­di­nate vot­ing shares, in ac­cor­dance with Couche-Tard’s ar­ti­cles.

Metro Hold­ings has also agreed to sell to CDP In­vestisse­ments Inc. and CDPQ Marches Bour­siers Inc., two wholly owned sub­sidiaries of Caisse de de­pot et place­ments du Que­bec, by way of a pri­vate agree­ment, a to­tal of 11,369,599 Class A mul­ti­ple vot­ing shares of Couche-Tard at a price per share of $57.17 for pro­ceeds of ap­prox­i­mately $650-mil­lion. These shares rep­re­sent ap­prox­i­mately 7.7 per cent of the out­stand­ing Class A mul­ti­ple vot­ing shares of Couche-Tard and ap­prox­i­mately 2 per cent when com­bined with the Class B sub­or­di­nate vot­ing shares of Couche-Tard.

The com­ple­tion of the sales with the deal­ers and the Caisse’s sub­sidiaries will oc­cur within the next two busi­ness days. As a re­sult of such sales, Metro and Metro Hold­ings will no longer be par­ties to the share­holder agree­ment re­lat­ing to Couche-Tard.

Metro Hold­ings has also en­tered into a pri­vate agree­ment with Couche-Tard for the re­pur­chase for can­cel­la­tion of 4,372,923 Class B mul­ti­ple vot­ing shares of Couche-Tard at a price per share of $57.17 for pro­ceeds of ap­prox­i­mately $250-mil­lion. These shares rep­re­sent ap­prox­i­mately 1 per cent of the out­stand­ing Class B sub­or­di­nate vot­ing shares of Couche-Tard and ap­prox­i­mately 0.8 per cent when com­bined with the Class A mul­ti­ple vot­ing shares of Couche-Tard. The com­ple­tion of this sale will oc­cur on or be­fore Nov. 7, 2017, and is con­di­tional upon Couche-Tard ob­tain­ing from the Au­torite des marches fi­nanciers of Que­bec, on or prior to such date, an or­der ex­empt­ing Metro Hold­ings from the re­quire­ments of Part 2 of Reg­u­la­tion 62-104 re­spect­ing Take-Over Bids and Is­suer Bids. This sale will be pre­ceded by the con­ver­sion of 4,372,923 Class A mul­ti­ple vot­ing shares of Couche-Tard cur­rently held by Metro Hold­ings into Class B sub­or­di­nate vot­ing shares, in ac­cor­dance with Couche-Tard’s ar­ti­cles.

Fol­low­ing the sales with the deal­ers and the Caisse’s sub­sidiaries and the re­pur­chase by Couche-Tard, Metro Hold­ings will re­main the ben­e­fi­cial owner of 5,114,923 Class A mul­ti­ple vot­ing shares in the cap­i­tal of Couche-Tard, rep­re­sent­ing ap­prox­i­mately 3.9 per cent of all is­sued and out­stand­ing Class A mul­ti­ple vot­ing shares in the cap­i­tal of Couche-Tard and ap­prox­i­mately 0.9 per cent when com­bined with the is­sued and out­stand­ing Class B sub­or­di­nate vot­ing shares of Couche-Tard.

The after-tax net pro­ceeds will be used to fi­nance the pre­vi­ously an­nounced busi­ness com­bi­na­tion with The Jean Coutu Group (PJC) Inc. and to re­duce Metro’s com­mit­ted bank fa­cil­i­ties.

About Metro Inc.

With an­nual sales of over $12-bil­lion, Metro, founded in 1947, is the only ma­jor Cana­dian food dis­tri­bu­tion com­pany to have its head of­fice in Que­bec. Metro op­er­ates a net­work of al­most 600 food stores un­der sev­eral ban­ners, in­clud­ing Metro, Metro Plus, Su­per C and Food Ba­sics, as well as over 250 drug­stores un­der the Brunet, Metro Phar­macy and Drug Ba­sics ban­ners.

We seek Safe Har­bor.

Alain Bouchard, Nathalie Bourque, Jacques d’Amours, Roger Desrosiers, Jean-An­dre Elie, Richard Fortin, Me­lanie Kau, Real Plourde, Daniel Rabi­now­icz, Jean Turmel

(ATD) Shares: 147,766,540

Newspapers in English

Newspapers from Canada

© PressReader. All rights reserved.