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CDPQ to give $1.5 billion for Bombardier's BT Holdco

Staff writer |
Bombardier has entered into a definitive agreement with CDPQ for a $1.5 billion convertible share investment in Bombardier Transportation’s newly-created holding company, Bombardier Transportation Investment UK (BT Holdco).

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Under the terms of the agreement, CDPQ will acquire shares of BT Holdco convertible into a 30% common equity stake of BT Holdco, subject to annual adjustments related to performance.

The transaction will be executed through a private placement and values Bombardier Transportation at $5 billion. The investment has been approved by the Boards of Directors of Bombardier and CDPQ.

BT Holdco will own all of the assets of Bombardier’s current Transportation business segment, with its operational headquarters remaining in Germany.

It will be governed independently by a new board to be composed of seven members, three of which will be named by CDPQ. Alain Bellemare will chair the board. Lutz Bertling, president, Bombardier Transportation, will continue in his current role.

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