Allstom: Fund loses $ 1 billion in investment

By becoming the main shareholder of Bombardier Transport, the French multinational that acquired Allstom, Kaisse de Depot et Placement du Quebec thus achieved the largest personal investment in life, with an investment of approximately $ 4.3 billion.

Kaisse now owns 64.9 million Alstom shares, or 17.5% of the shares issued.

When the deal to acquire Bombardier Shipping was formalized on January 29, Kaisse had invested $ 4.5 billion (91 2.91 billion) on paper, or $ 200 million more than the amount invested.

Allstom’s stock is trading at 44.61 euros ($ 69.19 Canadian).

Comes with the Alstom title

Yesterday, Allstom closed at 35.15 euros ($ 52.73 Canadian). In Canadian dollars, on Allstom paper, it lost 23.8% of its value in just six months.

Kaisse’s investment in Alstom is now $ 3.42 billion.

This is 1 billion less than when Kais officially became a major shareholder in the French multinational.

Kaisse was hit by two factors: one, the stock lost value due to disappointing financial results, and two, the euro also fell against the Canadian dollar.

Bombardier sells on time

Before Allstom’s stock plummeted (since June), the other two largest shareholders of multinational Allstom, the French company Bouguez SA (with 11.58 million shares) and our Cubacois Bombardier (with 11.5 million shares), decided to cancel the blocks. Shares.

Last March the Boeing received about 43 million euros each for a block of about 12 million Alstom shares. Bombardier was lucky enough to charge 44 euros per share for a block of 11.5 million Alstom shares.

Investment of the Fund

When it was officially announced on January 29 that Bombardier Transportation had been sold to Allstom, US $ 2.5 billion (2 3.2 billion Canadian) worth of investment in Bombardier Transportation was “rolling” into Alstom and an additional 700 million Euros (1.09 billion Canadian extra) Became the No. 1 shareholder.

Recall that in November 2015, Kais injected US $ 1.5 billion into Bombardier Transport, which allowed it to earn 30% off the Bombardier train subsidiary.

Thus Kais’ investment in Bombardier shipments increased by 66.7% between November 2015 and the end of January 2021.

Today, six months after officially becoming Allstom’s major shareholder, Kaisse sees on paper the appreciation of its initial investment in Bombardier Shipping.

Even for large institutional investors like Kaisse, the stock exchange is not easy.

But, being a patient investor, Kaisse had financial means to wait for the return of the French multinational title, which was closed because it was much more difficult than connecting Bombardier Transport at its doubling.