11-19-2015, 04:26 PM
(11-19-2015, 12:59 PM)ookpik Wrote:(11-19-2015, 11:25 AM)tomh009 Wrote: Yes and no. It's neither a gift or a loan, it's an investment, and CPDQ will own 30% of Bombardier Transportation, which is very much a viable business. CPDQ will be looking for future profits from that business (and possible disposal of their stake somewhere down the road) for returns on the investment. With a 30% stake they will have a significant voice in how the business is managed.
And CPDQ is managed independently of the government. Their mandate is to ensure returns for the pension plans (similar to CPP or Teachers') while also supporting Quebec industry. This seems like a pretty good fit for their mandate, although I can't judge how attractive the price is.
That 30% ownership (which can go up or down depending on how well Bombardier executes their business plan) also gives the QC government further pretext to prop up Bombardier in the future by way of sweetheart loans. After all think of the pensioners
It also makes it easier for the rail division to be spun off or sold off if the airplane side of the business should get into further trouble or fail.
This should be good news for the LRT here because it takes financial pressure off the rail division for the next few years. (Or if you're a pessimist it gives the rail division deeper pockets from which to pay Toronto, and perhaps Waterloo region, late delivery penalty payments.)
If I understood correctly, CPDQ is buying the Bombardier Transportation shares from BBD (the parent company), allowing BBD to fund the aerospace business. (Most of) the money won't actually flow into the transportation business.