Bombardier s'associe à Airbus

Dibbs said:

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.

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Dibbs said:

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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SL!nky.Ako said:

we got owned

- Trumps gets what he wants and a brand new plant in good old USA
- Airbus was GIFTED and gain we COULD have made from all those investments and years
- 30% devaluation.

Trudeau must be smiling right now

oh well I loved what McSween had to say about it this morning. The KY part on the radio LOL

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Dibbs said:

The first research reports I see all like the deal from a BBD shareholder's point of view.

Some say airbus' presence doubles the value of the program, in that sense, the value to Bombardier hasn't really changed given the 50% dilution of their equity stake.

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bigcortex said:

Qu'est-ce qu'il va arriver avec les parts d'Investissement Quebec?
Le 1 milliard d'investissement pour 50% était supposé être un prêt sans intérêts. Bombardier avait l'option de racheter toutes les parts d'IQ pour le même montant.

Donc en gros, si Airbus réussit à faire décoller les ventes de la C-Series et que le programme vaut plus que 25 milliards dans une couple d'années, les contribuables québecois vont ravoir leur 1 millard (sans intérêts donc on se fait fourrer pareil mais mieux vaut ca que perdre le 1 milliard au complet), et Bombardier va avoir la moitié du 25 milliards moins 1 millard.

Chose certaine, même si Airbus prend le contrôle, les contribuables québecois vont continuer à se faire syphonner à coups de chantages de la part d'Airbus pour garder les emplois au Quebec. Bref je pense pas qu'on est la veille de dégraisser cette vieille institution qu'est Bombardier.

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Spiter_01 said:

I think things were much more dire behind the scenes and this airbus tie up saves the program. If they do end up selling thousands of this plane then it's a good deal for everyone.

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Setak said:

bombardier avait déjà racheté une partie. Il restais 38% a IQ.

Airbus va racheté les 19% d'action de la C series de IQ en 2023 au prix du marché.

Donc il est possible qu'on mange de l'argent ou de faire une passe de cash. Who know?

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allroad said:

The whole aerospace industry is subsidized directly and indirectly by Governments otherwise it wouldn't stand on its own. Boeing masks it through their defense contracts and Airbus is subsidized by the EU.

The big winner in this deal is Airbus, they get a brand new plane with no investments. Bombardier was out of cash and has been a mismanaged company for years. The deal should help to put the C Series on the map however what is the outlook for Bombardier in Canada in the long-term? When an acquisition occurs, there are losers and in the long-term Montreal may lose out. If the C Series is a success in the US, manufacturing will come from Alabama.

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Spiter_01 said:

The Alabama line is meant to only service US orders, it has 1/3 the production capacity of the Mirabel one.

The thing I dislike the most is airbus's option to buy out BBD and QC in only 5 years, that's a terribly short period of time to evaluate the long-term succes of this program. 10 years would have been better, airbus could mothball the whole thing for 5 years and buy out the project on the cheap since BBD is financing the next 3 years anyways.

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bigcortex said:

Qu'est-ce qu'il va arriver avec les parts d'Investissement Quebec?
Le 1 milliard d'investissement pour 50% était supposé être un prêt sans intérêts. Bombardier avait l'option de racheter toutes les parts d'IQ pour le même montant.

Donc en gros, si Airbus réussit à faire décoller les ventes de la C-Series et que le programme vaut plus que 25 milliards dans une couple d'années, les contribuables québecois vont ravoir leur 1 millard (sans intérêts donc on se fait fourrer pareil mais mieux vaut ca que perdre le 1 milliard au complet), et Bombardier va avoir la moitié du 25 milliards moins 1 millard.

Chose certaine, même si Airbus prend le contrôle, les contribuables québecois vont continuer à se faire syphonner à coups de chantages de la part d'Airbus pour garder les emplois au Quebec. Bref je pense pas qu'on est la veille de dégraisser cette vieille institution qu'est Bombardier.

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Carbon_Blue_GT said:

Je pense que tu devrais revoir tes concepts de valeur d'actions

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