Topic: How To Invest

The Successful Investor Hotline – Friday, February 21, 2020

Article Excerpt

BOMBARDIER INC., Toronto symbols BBD.A $1.31 and BBD.B $1.25, is still a hold, but only for aggressive investors. The company is now selling its passenger railcar business (Bombardier Transportation) to France’s Alstom SA. Bombardier currently owns 67.5% of that subsidiary, while the Caisse de dépôt et placement du Québec, which manages the province’s public pension plan, owns the other 32.5%. Under the terms of the deal, Bombardier will receive between $4.2 billion and $4.5 billion for its stake (all amounts except share prices and market cap in U.S. dollars). Those figures are net of pension liabilities and other adjustments. If you include the proceeds from other recent asset sales at its aviation division, Bombardier will have cash of $6.5 billion to $7.0 billion that it can use to pay down its long-term debt of $9.3 billion (as of December 31, 2019). That would cut its debt to around $2.5 billion, which is still a high 110% of its current market cap of $3.0…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.