Caisse sells $700 million worth of Couche-Tard common shares

Couche-Tard says it is buying back nearly 8.7 million common shares held by CDPQ. Photo taken in Montreal on October 5, 2012. (Graham Hughes/The Canadian Press)

The Caisse de dépôt et placement du Québec (CDPQ) is reducing its stake in Alimentation Couche-Tard by about 20 per cent in a share buyback announced Tuesday.

Couche-Tard reported a "private agreement" under which the retailer is buying back nearly 8.7 million common shares held by CDPQ at a price of $80.50 per share.

This corresponds to a total consideration of approximately $700 million.

The purchase price represents a 3 per cent discount to the closing price of the shares on the Toronto Stock Exchange on Monday, and will be paid using Couche-Tard's cash on hand, the company said in a press release.

Following the share buyback, CDPQ will hold approximately 32.8 million shares, or about 3.5 per cent of Couche-Tard's total outstanding shares, it said.

Chief financial officer Filipe Da Silva said the company's healthy balance sheet and strong financial position meant it was "well positioned for opportunities such as this to deploy excess available cash."

The Caisse explained the transaction as a "periodic portfolio rebalancing."

"Following this transaction, the CDPQ will remain one of Alimentation Couche-Tard's main shareholders with a stake totalling $2.7 billion," said senior vice-president Kim Thomassin, adding that the CDPQ would continue to "support the expansion of this international leader."

"The proceeds from this monetization will be reinvested in other Quebec companies," she added.

- This report by The Canadian Press was first published in French on July 23, 2024.