Alimentation Couche-Tard buys back nearly 11 million shares
Published on: Jul 31, 2023
The company agreed to repurchase the shares by entering into a private agreement with Caisse de dépôt et placement du Québec and paying approximately $531 millions.
Alimentation Couche-Tard announced that it entered into a private agreement with Caisse de dépôt et placement du Québec ("CDPQ"), for the repurchase of 10,820,837 common shares of Couche-Tard. With a price of CAD 64.69 per share, the total transaction amounts to approximately $531 millions.
"This transaction is consistent with our opportunistic approach in regard to our share repurchase program and broader capital allocation priorities and represents a distinct opportunity to create shareholder value. Our healthy balance sheet and strong financial position, highlighted by our low leverage ratio, allows us to be well-positioned for opportunities like this to deploy excess cash on-hand and take advantage of attractive financing rates through our US Commercial Paper Program," said Filipe Da Silva, Chief Financial Officer at Alimentation Couche-Tard.
The repurchase price represents a discount of 3% to the closing price of the shares on the Toronto Stock Exchange on July 28, 2023, to be paid with the company's cash on hand as well as proceeds raised through its US Commercial Paper Program.
"Once again this year, Alimentation Couche-Tard has outperformed for its shareholders. CDPQ is a long-standing investor, and we plan to maintain our commitment as the company continues to grow, for the benefit of our depositors," said Kim Thomassin, Executive Vice-President and Head of Québec at CDPQ.
The repurchase will be made in connection with the periodic portfolio rebalancing of CDPQ. Once it is completed, CDPQ will hold approximately 41.5 million shares, representing approximately 4.3% of Couche-Tard's total shares outstanding.
