CDPQ to Sell Common Shares of Intact Financial Corporation
MONTRÉAL — CDPQ has announced a major decision to sell 2,500,000 common shares of Intact Financial Corporation (TSX: IFC), which represents around 1.4% of the company’s outstanding shares.
Details of the Sale
The shares are priced at $278.60 each, with CIBC Capital Markets and National Bank Financial underwriting the deal. CDPQ anticipates raising approximately $696.5 million from this transaction.
Impact on CDPQ’s Shareholding
Following the sale, CDPQ's ownership in Intact will decrease to about 6.6%, ensuring it remains the largest shareholder of the company. Intact continues to be one of CDPQ's key holdings in the public markets, demonstrating the importance of this investment.
Statements from Leadership
Vincent Delisle, Executive Vice-President and Head of Liquid Markets at CDPQ, emphasized the long-term relationship between CDPQ and Intact, stating that this move allows them to realize some profits while still retaining a significant stake in the company. He remarked, 'Our investment has yielded substantial returns over the years, and we maintain our commitment to Intact's future growth prospects.'
CDPQ's Confidence in Intact
Ken Anderson, Executive Vice President and CFO of Intact Financial, expressed gratitude for CDPQ's ongoing support, noting that the transaction facilitates a significant gain while still allowing Intact to pursue its growth initiatives. He stated, 'With an annualized total shareholder return of 15% over the past decade, we feel positioned to maintain our track record of success.'
About CDPQ
CDPQ is a global investment group managing funds from public pension and insurance plans. The entity is known for its strategic investments across various sectors, including financial markets, private equity, infrastructure, and real estate. As of June 30, 2024, CDPQ has net assets totaling CAD 452 billion, highlighting its significant role in investment management.
About Intact Financial Corporation
Intact Financial is the largest provider of Property and Casualty (P&C) insurance in Canada. The organization excels in specialty lines and commercial insurance within Canada, the UK, and Ireland. Intact has achieved impressive growth, garnering nearly $24 billion in total annual operating premiums.
Intact's Distribution Channels
Operating under several brands, including Intact Insurance and belairdirect, Intact reaches a diverse customer base through brokers and direct channels. Their offerings include tailored insurance products for high-net-worth individuals as well as competitive solutions for U.S.-based clients.
Contact Information
For inquiries, contact:
CDPQ Media Relations Team
Phone: +1 514 847-5493
Email: medias@cdpq.com
Caroline Audet
Manager, Media Relations and Public Affairs, Intact Financial
Phone: 416 227-7905 / 514 985-7165
Email: media@intact.net
Frequently Asked Questions
What is CDPQ's recent decision regarding Intact Financial shares?
CDPQ plans to sell 2.5 million common shares of Intact Financial Corporation.
How much does CDPQ expect to gain from the sale?
CDPQ is anticipating gross proceeds of approximately $696.5 million from the offering.
What percentage of Intact Financial will CDPQ own post-sale?
After this transaction, CDPQ will retain about 6.6% of Intact's common shares.
How has Intact Financial performed in recent years?
Intact Financial has delivered an annualized total shareholder return of 15% over the last 10 years.
What industries does CDPQ invest in?
CDPQ invests in financial markets, private equity, infrastructure, real estate, and private debt.
