Convenience and mobility store leader Alimentation Couche-Tard announced that it has entered into an agreement with Caisse de dépôt et placement du Québec (CDPQ) to repurchase for cancellation more than 10.82 million shares of Couche-Tard, at a price of $64.69 per share, for a total of approximately $700 million.
The repurchase price represents a 3% discount to the closing price of the shares on the Toronto Stock Exchange on July 28, 2023, the company said.
Couche-Tard said the repurchase is being made in connection with the periodic portfolio rebalancing of CDPQ, an institution investor that manages several pension plans and insurance programs in Québec, Canada.
“This transaction is consistent with our opportunistic approach in regard to our share repurchase program and broader capital allocation priorities and represents a distinct opportunity to create shareholder value,” Couche-Tard CFO Filipe Da Silva said.
“Our healthy balance sheet and strong financial position, highlighted by our low leverage ratio, allows us to be well-positioned for opportunities like this to deploy excess cash on-hand and take advantage of attractive financing rates through our US Commercial Paper Program.”
Executive Vice-President and Head of Québec at CDPQ Kim Thomassin added: “In this transaction, CDPQ will be monetizing a portion of its investment in order to reinject funds into Québec-based businesses while remaining one of the main shareholders of this multinational leader of the convenience store sector.”
Post-repurchase, CDPQ will hold about 41.5 million shares of Couche-Tard, representing approximately 4.3% of the company's total outstanding shares.
Thomassin said the CDPQ’s stake was now valued at C$2.8 billion.
Couche-Tard operates more than 14,400 convenience and mobility stores in 25 countries and territories, including under the well-known Couche-Tard and Circle K banners.
Its shares traded modestly higher on Monday morning, up 0.2% at C$66.79.
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