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Caisse will have to return $257 million to Alstom

Caisse will have to return $257 million to Alstom

Alstom's financial difficulties will cost the Quebec Deposit and Deposit Fund dearly: the institution will have to return $257 million to the French company for its rescue.

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The reinvestment is part of a 1 billion euro ($1.48 billion Canadian dollar) share issue announced Wednesday by the rail equipment giant.

Caisse, which owns 17.4% of Alstom's shares, will participate in the operation in proportion to its stake in the company, meaning it will have to re-inject 174 million euros ($257 million CAD).

Investing in free fall

At the end of January 2021, Caisse invested about $4.5 billion in Alstom to help it acquire Bombardier Transportation. This investment is worth just $1.7 billion today.

To get back on track, Alstom also announced asset sales worth €700 million, a hybrid bond issue worth €750 million, and the suspension of its dividend.

During its fiscal year ending March 31, Alstom recorded a net loss of €309 million and revenue of €17.6 billion.

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