Transcon's Marcoux Sells 30 Percent of Shares
MONTREAL—Rémi Marcoux, executive chairman and founder of Transcontinental Inc., has completed—through his holding companies—the sale of four million Transcontinental shares. The monetization transaction involves a forward contract concluded with a Canadian chartered bank referencing the closing price of Transcontinental Class A subordinate voting shares on Aug. 9. Pursuant to this agreement, Marcoux’s holding companies will retain the beneficial ownership and voting rights attached to the monetized shares.
This financial instrument allows Marcoux’s holding companies to monetize approximately 30 percent of his aggregate participation in Transcontinental shares, while retaining effective control of the corporation in the hands of the Marcoux family. According to Marcoux, the deal was designed to allow stability in Transcontinental’s operations and long-term family succession planning.
The number of shares subject to monetization are four million Transcontinental shares from Marcoux’s holding companies’ total of 13,209,840 Class B shares. Prior to the monetization, Transcontinental and Marcoux’s holding companies completed a series of transactions involving an exchange of shares to crystallize the safe income attributable to the block of Transcontinental shares that were monetized. The exchange has no negative impact on the corporation or its shareholders, nor does it give rise to any change to Class A subordinate voting shares and Class B shares. Marcoux’s holding companies assumed the costs related to these transactions.