Bombardier s'associe à Airbus

C'est une association gagnante-gagnante. Et tout ça, à cause Boeing qui pensait jouer les gros bras. Boeing, en ce moment: "Ooooooh fuck! Le marché international va nous péter dans la face.".
 
Ouverture d'une usine d'assemblage final en Alabama.

Fuck you Trump et tes 300% de taxes

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Boeing you done and fucked yourself real good. Thought you'd kill a competitor before it hatches and you just pushed it into the arms of your largest competitor.

Airbus get's a great deal, new ready to go plane in a segment it doesn't serve (especially since it looks like the A380 is winding down) without the long lenghty developmental bullshit. Puts it a decade infront of boeing in this segment.

Development of the CS500-700 to replace it's aging A320 program.

What I don't understand is the breakdown of the equity stake. QC and BBD owned 50% each of the program, how does that become 19% and 31% respectively after this? BBD using the new money to exercises some of those options it had?

An other example of America's protectionist bullshit bringing the rest of the world together.
 
BBD is not getting any money from this.

Airbus said, give me 50.01% for x$. Then BBD and IQ got diluted. They owned 68 / 32 , now they'll have 31 /19. Actually looks like IQ got less diluted than BBD.

full details below:

Ownership Structure and Agreement Highlights

The C Series programme is operated by CSALP in respect of which Bombardier and IQ respectively hold approximately a 62% and a 38% interest. The Investment Agreement contemplates Airbus acquiring a 50.01% interest in CSALP. Airbus will enter into commercial agreements relating to (i) sales and marketing support services for the C Series, (ii) management of procurement, which will include leading negotiations to improve CSALP level supplier agreements, and (iii) customer support. At closing, there will be no cash contribution by any of the partners, nor will CSALP assume any financial debt. It also contemplates that Bombardier will continue with its current funding plan of CSALP and will fund, if required, the cash shortfalls of CSALP during the first year following the closing up to a maximum amount of US$350 million, and during the second and third years following the closing up to a maximum aggregate amount of US$350 million over both years, in consideration for non-voting participating shares of CSALP with cumulative annual dividends of 2%, with any excess shortfall during such periods to be shared proportionately amongst Class A shareholders.

Airbus will benefit from call rights in respect of all of Bombardier’s interest in CSALP at fair market value, with the amount for non-voting participating shares used by Bombardier capped at the invested amount plus accrued but unpaid dividends, including a call right exercisable no earlier than 7.5 years following the closing, except in the event of certain changes in the control of Bombardier, in which case the right is accelerated. Bombardier will benefit from a corresponding put right whereby it could require that Airbus acquire its interest at fair market value after the expiry of the same period. IQ’s interest is redeemable at fair market value by CSALP, under certain conditions, starting in 2023. IQ will also benefit from tag along rights in connection with a sale by Bombardier of its interest in the partnership.

The Board of Directors of CSALP will initially consist of seven directors, four of whom will be proposed by Airbus, two of whom will be proposed by Bombardier, and one of whom will be proposed by IQ. Airbus will be entitled to name the Chairman of CSALP.

Subject to obtaining the required approval from the Toronto Stock Exchange, the transaction also provides for the issuance to Airbus, upon closing, of warrants exercisable to acquire up to 100,000,000 Class B Shares (subordinate voting) of Bombardier (representing approximately 5% of the aggregate issued and outstanding Class A Shares (multiple voting) and Class B Shares of Bombardier on a fully-diluted basis, and approximately 5% of the aggregate issued and outstanding Class A Shares and Class B Shares on a non-diluted basis), at an exercise price per share equal to the US$ equivalent of C$2.29, which represents the volume-weighted average price of the Class B Shares over the five trading days ending Friday, 13 October 2017. The warrants will have a five-year term from the date of issue, will not be listed and will provide for market standard adjustment provisions, including in the event of corporate changes, stock splits, non-cash dividends, distributions of rights, options or warrants to all or substantially all shareholders or consolidations.

The issuance of the warrants and their terms were negotiated between Bombardier and Airbus at arm’s length and will not materially affect control of Bombardier. Security holder approval will be required under Toronto Stock Exchange rules due to the fact that the warrants will be issued later than 45 days from the date upon which the exercise price was established. Such approval is expected to be obtained by way of written consent of shareholders holding more than 50% of the voting rights attached to all of Bombardier’s issued and outstanding shares.

The transaction has been approved by the Boards of Directors of both Airbus and Bombardier, as well as the Cabinet of the Government of Québec. The transaction remains subject to regulatory approvals, as well as other conditions usual in this type of transaction. There are no guarantees that the transaction will be completed and that the conditions to which it is subject would be met. Completion of the transaction is currently expected for the second half of 2018.
 
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Boeing you done and fucked yourself real good. Thought you'd kill a competitor before it hatches and you just pushed it into the arms of your largest competitor.

Airbus get's a great deal, new ready to go plane in a segment it doesn't serve (especially since it looks like the A380 is winding down) without the long lenghty developmental bullshit. Puts it a decade infront of boeing in this segment.

Development of the CS500-700 to replace it's aging A320 program.

What I don't understand is the breakdown of the equity stake. QC and BBD owned 50% each of the program, how does that become 19% and 31% respectively after this? BBD using the new money to exercises some of those options it had?

An other example of America's protectionist bullshit bringing the rest of the world together.

Difficile d'être en accord avec toi et ton obsession pour le libéralisme
 
BBD is not getting any money from this.

govt got diluted more than family.

Airbus said, give me 50.01% for x$, I don't care how you split the rest. I guess govt bent over and got 19%.

wait what? BBD just gifted 50% of the program to Airbus? QC bought a 50% stake at a billion dollars, effectively valuing it at $2B let's say the program is still at the same valuation but the QC equity stake is now 19% of $2B is now valued at $380M.

So you're telling me QC is just going to writing off $620M in this?

edit: I think you meant BBD the entity doesn't get cash the program does.

https://www.bloomberg.com/news/arti...rity-stake-in-bombardier-c-series-jet-program
 
I'm not sure I get how this is a good deal from a BBD shareholder's point of view.

You got diluted 50% on the CSeries with no cash injection, only intangible value brought by Aibus.
BBD needs to fund up to US$350mm in 1st year and US$350mm in the 2nd and 3rd year (combined).
Bunch of dilutive warrants

I guess you really need to trust Airbus to sell these babies.
 
wait what? BBD just gifted 50% of the program to Airbus? QC bought a 50% stake at a billion dollars, effectively valuing it at $2B let's say the program is still at the same valuation but the QC equity stake is now 19% of $2B is now valued at $380M.

So you're telling me QC is just going to writing off $620M in this?

https://www.bloomberg.com/news/arti...rity-stake-in-bombardier-c-series-jet-program

IQ's in the business of taking write-offs... ask me how I know ;) actually, don't.

Airbus brings intangible value, so I'm not sure it forces IQ to take a write-off. It ultimately depends on accountants and the resulting value of this intangible contribution.

The press release it says IQ owns 38%, not 49.5%. I'm not sure how to bridge that gap.

Edit: BBD funded CSALP through equity injection, taking IQ's 49.5% to 38%. It's in the Q1/Q2-17 reports.
 
I'm not sure I get how this is a good deal from a BBD shareholder's point of view.

You got diluted 50% on the CSeries with no cash injection, only intangible value brought by Aibus.
BBD needs to fund up to US$350mm in 1st year and US$350mm in the 2nd and 3rd year (combined).
Bunch of dilutive warrants

I guess you really need to trust Airbus to sell these babies.

Better start putting that EU/Canadian diplomacy to work, better start seeing state owned airlines buying a bunch of these suckers + if the US reimposes sanctions on Iran I guess they can sell a bunch of these planes to the Iranians.

I also wonder if the production in Alabama and final assembly in Canada allows the Cseries to completely sidestep the commerce department tariffs.
 
yeah I guess it'll be interesting to see if they bought the platform for the CS100/CS300 or really only looking to upsize the CS300 to address the a320 market with a new product.
 
Until a better global system comes up I'll go with the one that's brought us relative peace stability and prosperity.

L'avènement d'une seule dictature à l'échelle planétaire, t'appelles ça de la paix, de la stabilité et de la prospérité?
 
L'avènement d'une seule dictature à l'échelle planétaire, t'appelles ça de la paix, de la stabilité et de la prospérité?
Même Trump veut que tu te taises parfois
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Envoyé de mon Pixel XL en utilisant Tapatalk
 
Donc en gros ils cedent le controle a Airbus pour la C-Serie? Comment voir ca comme une victoire? Airbus prendra les decisions qui feront en sorte qu'ils en sortent gagnants.
 
Enfin des bonnes nouvelles. Il était temps, il me semble que c'est juste de la marde c'est temps citte.

"Protectionnisme". Hahaha.
 
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