Carol Hansell Comments on Bombardier Sale
November 19, 2015
The grip of Bombardier Inc.’s controlling family over the Canadian transportation giant loosened further Thursday as it agreed to sell almost a third of its train business to Quebec’s major pension fund for $1.5 billion.
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The deal marks the second time in less than a month that the company’s home province has stepped in to help shore up its stretched balance sheet.
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Montreal-based Bombardier, which has struggled with mounting losses, said Thursday it had agreed to sell a 30% stake in a newly created entity that will hold its rail manufacturing business to Caisse de dépôt et placement du Québec, Canada’s second-largest pension fund. The investment values the spinoff company at $5 billion, roughly in line with analyst valuations.
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“The financial and governance protections certainly make it look like an arms-length, commercial arrangement,” said Carol Hansell, a Toronto-based lawyer and corporate governance expert.