Montreal-based CGI, a provider of IT and business consulting services, has agreed to buy back 4.2 million of its shares held by Caisse de dépôt et placement du Québec. The price of the shares is C$95.13 per unit or about C$400 million. Once the transaction is completed, CDPQ will hold about 10.9 percent of CGI’s total shares.
MONTRÉAL, Feb. 19, 2021 /CNW Telbec/ – CGI (TSX: GIB.A) (NYSE: GIB) announced today that it intends to enter into a private agreement with Caisse de dépôt et placement du Québec (“CDPQ “) for the purchase for cancellation of 4,204,865 of its Class A subordinate voting shares (“Class A Shares”) held by CDPQ for a price of $95.13 per Class A Share, which represents a discount to the closing price on February 18, 2021 of the Class A Shares on the Toronto Stock Exchange (“TSX”).
The transaction will be made in connection with the periodic portfolio rebalancing of CDPQ. Once completed, CDPQ will continue to hold approximately 27.2 million Class A Shares, representing approximately 10.9% of CGI’s total outstanding shares.
“CGI continues to demonstrate the resilience of its business model by once again delivering solid financial results. As in past years, when the conditions are right, CDPQ monetizes a portion of its investment to benefit its depositors,” said Kim Thomassin, Executive Vice-President and Head of Investments in Québec and Stewardship Investing at CDPQ. “CDPQ remains one of CGI’s significant shareholders and intends to continue supporting the long-term growth of this global IT and business consulting services leader.”
“This transaction is immediately accretive and in line with our value creation model,” said Julie Godin, Co-Chair of the Board, CGI. “With a solid balance sheet and strong cash generation combined with more than $3.2 billion in liquidity at the end of December 2020, we remain very well positioned to continue executing our Build and Buy profitable growth strategy.”
A favourable decision was obtained from the Autorité des marchés financiers to exempt CGI from the issuer bid requirements under securities legislation applicable to the transaction, which will be made at a discount in accordance with the decision and is expected to be entered into later today and settled on February 22, 2021.
The share repurchase will be made under CGI’s normal course issuer bid (“NCIB”), the renewal of which was announced on January 27, 2021. Under the NCIB, CGI is authorized to repurchase up to 19,184,831 Class A Shares by February 5, 2022.
The NCIB allows for purchases outside the facilities of the TSX by private agreements pursuant to exemption orders issued by securities regulators. As at February 12, 2021, CGI had not repurchased any Class A Shares under its current NCIB.
Information regarding the share repurchase, including the number of Class A Shares purchased for cancellation and aggregate price paid, will be available on the SEDAR website at sedar.com following the completion thereof. CGI will not issue any additional press release in respect of this share repurchase.
Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 76,000 consultants and other professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. CGI Fiscal 2020 reported revenue is C$12.16 billion and CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more at cgi.com.