Had CDPQ taken advantage of the weak management of BBD?Look at the terms of 1.5 billion investment from CDPQ. Had CDPQ taken advantage of the weak management of BBD?
Under the terms of the transaction, CDPQ is entitled to:
- the higher of
- the fair market value of its 30% stake in BT Holdco (on an as-converted basis),
- or a minimum return of 9.5%,
- both subject to the annual performance adjustments described below;
- in certain circumstances, based on the call option, the tag-along, drag-along and change of control rights, the higher of
- if applicable, the third-party offer for its stake (on an as-converted basis),
- or a minimum three-year 15% compounded annual return;
- at any time after three years after closing, if Bombardier buys back CDPQ’s convertible shares, the higher of
- the fair market value of its stake (on an as-converted basis),
- or a minimum 15% compounded annual return ; and
- voting rights (on an as-converted basis), being equal to 30% initially.
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