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.
• Read also: Economic summit meeting between François Legault, Gabriel Attal and the CEOs of Quebec.
• Read also: France has benefited more from free trade than Quebec
• Read also: Four malfunctions in four days: REM should improve, Quebec warns
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.
“Music guru. Incurable web practitioner. Thinker. Lifelong zombie junkie. Tv buff. Typical organizer. Evil beer scholar.”
More Stories
'I really don't regret my decision': This nurse from Quebec is moving from the private sector to the public
Balance of Life: Levi's sits at the top in Canada
Air Canada flight diverts mid-flight to France