RE:RE:It doesn't make sensecseriesaddick, I guess nobody here saw the full text of the agreement. I hpe there is stapulation on IP, how much and how BBD holds it. It may leave a door for BBD to seat aside of the new model but collects some money on. If it is not addressed I would ask whom Bellemare was working for or if he is bussiness man. It was BBD want the deal so it is not fair for sure.
cseriesaddick wrote: It would not make sens if we hadn't this agreement by which Airbus can buy back Bombardier's stake in 2026. We only had 7 years to grow ACLP's value. For now, the A220 is not profitable and won't be before a certain period of time.
Moreover, ACLP is now asking Bombardier to put more money on top of the 950 million it was already committed to provide from 2018 to 2021. Because of that, the net gain for Bombardier, at the end of the road, will be reduced substantially. Airbus, on its side doesn't need cash and can wait a longer period of time to reap the benefits of the program.
Since Bombardier needs cash and need it now, it can't park hundreds of million dollars in ACLP with no immediate profits and a weaker perspective in terms of return on investment. This money will be more usefull for Bombardier's own operations.
So they will try to immediately monetize the current value of their stake in ACLP by selling it to Airbus.It will help Bombardier to buy back CDPQ'stake in BT and thus increase the margins generated by this division. By doing so, they will be able to generate more positive free cash flow and increase Bombardier's value.