Overview of the Recent Transaction between TC Transcontinental and Capinabel
MONTRÉAL — TC Transcontinental (“Corporation” or “TC Transcontinental”) has completed a noteworthy agreement with Capinabel inc. (“Capinabel”) that culminates in the termination of the monetization of 3,950,000 TC Transcontinental Class B Shares.
Details of the Transaction
The transaction marks a significant shift in the share management strategy initially set in motion on August 10, 2010, when Capinabel entered into a monetization agreement involving 4,000,000 Class B Shares with a Canadian chartered bank.
This move was partly influenced by the financial planning of Mr. Rémi Marcoux, the Founder of TC Transcontinental, who was later named Founder Emeritus of the Corporation. His role concluded with his departure from the Board of Directors in 2024. Earlier, on July 20, 2021, a partial termination of the monetization allowed for the release of 50,000 Class B Shares.
Implications of the Share Termination
As a result of this recent transaction, Capinabel has transferred 3,950,000 Class A Subordinate Voting Shares back to the Bank, concluding the monetization process and solidifying the ongoing corporate reorganization.
Before this transaction, Capinabel held considerable power within TC Transcontinental, representing around 74.42% of voting rights in the company. Post-transaction, they no longer possess Class A Subordinate Voting Shares but continue to hold 8,714,884 Class B Shares, which correspond to approximately 91.67% of all Class B Shares and 65.86% of the total voting rights.
TC Transcontinental's Corporate Standing
In connection with this transaction, TC Transcontinental received exemptions from certain financial regulations, particularly those concerning issuer bids under Regulation 62-104. It's important to note that this transaction poses no adverse economic or tax ramifications for TC Transcontinental, ensuring the integrity of its business operations remains intact. Capinabel has undertaken all associated costs of this transaction.
Company Overview
Founded in 1976, TC Transcontinental stands as a preeminent force in North America’s flexible packaging market and the leading print service provider in Canada. Additionally, it holds a prominent position in educational publishing within Canada, particularly for French-language materials.
TC Transcontinental operates on a foundation of values including respect, teamwork, performance, and innovation, which are integral to both its corporate culture and its relationships with stakeholders.
Recent Financial Performance
With a workforce of around 7,500 employees across Canada, the United States, and Latin America, TC Transcontinental achieved impressive revenues of $2.8 billion in its last fiscal year. The company is committed to providing high-quality products and services that enable its clients to effectively engage their target audiences.
Contact Information
For Media Inquiries
Jonathan Provencher
Senior Manager, Corporate Communications
TC Transcontinental
(438) 925-1412
Email: jonathan.provencher@tc.tc
For Investor Relations
Yan Lapointe
Director, Investor Relations & Treasury
TC Transcontinental
(514) 954-3574
Email: yan.lapointe@tc.tc
Insights on Capinabel Inc.
Nathalie Marcoux
President, Vice President, Finance, and Secretary
Capinabel Inc.
Email: nathaliemarcoux@capinabel.com
Frequently Asked Questions
What was the purpose of the transaction between TC Transcontinental and Capinabel?
The transaction aimed to terminate the monetization of TC Transcontinental Class B Shares held by Capinabel, thereby restructuring share management effectively.
How many Class B Shares did Capinabel hold before the transaction?
Before the transaction, Capinabel represented about 74.42% of the voting rights attached to TC Transcontinental's shares.
What are TC Transcontinental's main business sectors?
TC Transcontinental is a leader in flexible packaging, retail services, and educational publishing, particularly for French-language materials.
How has TC Transcontinental's recent performance been?
In its last fiscal year, TC Transcontinental reported revenues of $2.8 billion and has a workforce of around 7,500 employees spread across North America.
Who should be contacted for media inquiries about TC Transcontinental?
For media inquiries, Jonathan Provencher is the Senior Manager for Corporate Communications and can be reached via email or through his contact number.
