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Bombardier and Alstom ink sale agreement for transportation business

  • Bombardier (OTCQX:BDRBF -0.8%signed a definitive sale and purchase agreement with Alstom (OTCPK:AOMFF) and the Caisse de dépôt et placement du Québec for the sale of its transportation business to Alstom.
  • The interests will be sold on the basis of an enterprise value of $8.4B, indicating a $350M price reduction from the previously announced Memorandum of Understanding.
  • Proceeds are expected to be $6.2B, based on the lower end of the range agreed to in the agreement; includes la Caisse's equity position of $2.2B and $585M of Alstom shares monetizable after a three-month lock-up post-closing.
  • Transaction expected to close in 1Q21.
  • "The proceeds from this transaction will allow us to begin reshaping our capital structure and start addressing our balance sheet through debt paydown, so that we can achieve the full potential of our incredibly talented employees and our industry leading business jet portfolio," president & CEO Éric Martel commented.
  • Quick look at the company's  available short-term capital resources as it navigates challenges to bridge the transaction with Alstom:

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