Caisse disposes of WSP shares for half a billion dollars
The Quebec Deposit and Investment Corporation (CDPQ) is parting ways with over half a billion dollars worth of shares in Montreal-engineering giant WSP Global. This isn't a sudden decision; it's part of CDPQ's regular portfolio shuffle.
Last year, CDPQ already let go of a substantial chunk of WSP shares, to the tune of $600 million. As the firm's largest shareholder, this move is still causing ripples in the industry.
This round of share selling involves approximately 2 million WSP shares, priced at $242.70 each, in a deal facilitated by BMO and National Bank Financial. It's important to note that this trade only represents about 1.6% of WSP Global's total shares outstanding.
WSP Global finished the trading day on Thursday at $253.41 CAD on the Toronto Stock Exchange, not too far off from its all-time high of $264 reached in late February.
Timing for CDPQ's sale couldn't be worse, with WSP Global set to present its first-half results and hold its annual general meeting just two weeks from now. Nevertheless, CDPQ will still maintain its top spot as WSP Global's biggest shareholder, holding around 14.2% of the shares.
WSP Global ranks as one of CDPQ's top 20 investments in Quebec. In a statement, Kim Thomassin, CDPQ's Executive Vice-President and Chief Quebec Officer, shared that the organization has been instrumental in WSP Global's growth since 2011, backing the company in eight major acquisitions. Now, CDPQ aims to cash in on part of their investment while continuing to be the leading shareholder.
Thomassin also hinted at reinvesting the capital into Quebec-based companies, including WSP Global, to boost local business growth.
On Bay Street, WSP Global's stock is nearly universally recommended, with only one analyst advising against purchasing. These Wall Street analysts predict the stock's value to climb by 15% over the next year. It's another promising chapter for this engineering powerhouse, as it continues to make waves in the industry.
- The Quebec Deposit and Investment Corporation (CDPQ), the largest shareholder of WSP Global, is selling over 2 million WSP shares, worth around half a billion dollars, in a deal facilitated by BMO and National Bank Financial.
- Despite timing the sale just before WSP Global's first-half results and annual general meeting, CDPQ will still maintain its position as the company's largest shareholder, holding around 14.2% of the shares.
- As part of its regular portfolio shuffle, CDPQ aims to cash in on part of their investment in WSP Global and reinvest the capital into Quebec-based companies, including WSP Global, to boost local business growth.
- WSP Global, a top 20 investment for CDPQ in Quebec, is advised as a nearly universally recommended stock on Bay Street, with Wall Street analysts predicting the stock's value to climb by 15% over the next year.
- As the firm's largest shareholder, CDPQ's decision to sell its shares in WSP Global has caused ripples in the industry, particularly as WSP Global continues to make waves in the technology, business, and engineering sectors.
