CDPQ has revealed it will sell 2,312,000 common shares of Intact Financial Corporation (IFC), representing approximately 1.3% of the issued and outstanding common shares of IFC as of February 26, 2024.
According to CDPQ, the common shares are being sold on an underwritten block trade basis at a gross price of $227.10 per share, underwritten by CIBC Capital Markets and BMO Capital Markets.
CDPQ explained that it has granted the underwriters an option, exercisable at any time, in whole or in part, at the offering price until February 28, 2024, to purchase up to an additional 15% of the number of common shares purchased in connection with the offering.
CDPQ anticipates that it will receive gross cash proceeds of approximately $525,055,200 from the offering, or $603,813,480 if the above option is exercised in full.
The firm noted that the transaction is a result of its periodic portfolio rebalancing. After giving effect to the trade, CDPQ will reportedly hold 8.9% of the issued and outstanding common shares of IFC.
Vincent Delisle, Executive Vice-President and Head of Liquid Markets at CDPQ, commented, “CDPQ has been there as partner supporting major acquisitions for Intact over the past several years, and we continue to have confidence in its growth prospects.
“Intact produces excellent results for its shareholders and this transaction is an opportunity to monetize a portion of our investment to the benefit of our depositors.”
Louis Marcotte, Executive Vice President and CFO, Intact Financial Corporation, added, “CDPQ continues to be a valued partner in Intact’s evolution as a leading international P&C insurer, and will remain our largest shareholder following this transaction.
“We have delivered an annualized total shareholder return of 14% over the last 10 years, and we remain well positioned to sustain our track record of outperformance, given the strength of our platforms, the talent at our disposal, and a clear strategic roadmap.”
