RE:RE:RE:RE:RE:RE:RE:RE:RE:A sharesThey may not have a choice. If they still have control now, it is only by a sliver.
Covid-19 has hurt them badly. Originally, they projected $2.5B net debt after Alstom deal. That is now projected to be at least $4.5B. Actual LTD will likely be north of $6.5B
after Alstom proceeds are applied. They have $4.35B debt due by Jan 2023.
To my thinking, they need an additional ~$2B at low rates. I don't think they will get this without giving up control (or at least the deal being structured such that they might lose control if certain targets are not achieved).
Jim
bicente wrote: this is why I believe Martel said that he did not need the govts' help ... I believe the family has found cheap financing to cut down their interest rates and must give up some equity BUT they will not give up the voting percentages ... I think they are working on giving up futur profits/divids whatver without giving up control , if that is possible ...one thing is for sure , it is good news ... GLTA
raphaelle2 wrote: Very likely.I Lets not forget that Bain Cap. has been working hand in hand with the Family to structure BRP. With both making ( and still) making a killing. I dont see EM restructuring the debt by himself. Not enough leverage. Complete different picture with a strong US partner.Will know soon! GLTA in board !
clubhouse19 wrote: Pablo You made me think of something of the possibility that the move of the A shares has something to do with addressing the debt How it woll be structured remains to be seen. That is why imo the A shares have diverged so much from the b's