Bombardier gets US$1.5B rail business investment
Bombardier has signed a deal that will see the Caisse de depot et placement du Quebec invest US$1.5 billion in the company for a stake in its rail business.
Under the agreement, the Caisse will receive shares that will be convertible into a 30 per cent stake in a newly created holding company for Bombardier Transportation.
The pension fund manager’s investment also includes provisions that would see its stake be reduced if Bombardier Transportation outperforms its business plan and vice versa.
Bombardier says the deal concludes its review of options for Bombardier Transportation, which sells subway cars and other mass transit systems.
The company has been struggling as it has worked to complete development of its new CSeries passenger jet.
The Quebec government has agreed to give Bombardier US$1 billion to help complete development of the CSeries in exchange for a 49.5 per cent stake in that project.