CGI Inc. announces intent to purchase 3.34M shares held by CDPQ

CGI announced that it intends to enter into a private agreement with CDPQ for the purchase for cancellation of 3,344,996 of its Class A subordinate voting shares held by CDPQ for a price of $119.58 per Class A Share, which represents a discount to the closing price on February 24, 2023 of the Class A Shares on the Toronto Stock Exchange. The transaction will be made in connection with the periodic portfolio rebalancing of CDPQ. Once completed, CDPQ will continue to hold approximately 19.18 million Class A Shares, representing approximately 8.16% of CGI’s total outstanding shares. "This transaction is consistent with our value creation strategy and is immediately accretive to our shareholders," said Julie Godin, Co-Chair of the Board, CGI. "CGI has the strength and capital resources to execute on our Build and Buy profitable growth strategy given our strong balance sheet and excellent cash generation, combined with $2.8 billion of cash readily available at the end of December 2022." A favourable decision was obtained from the Autorite des marches financiers to exempt CGI from the issuer bid requirements under applicable securities legislation. The transaction will be entered into at a discount, in accordance with the decision of the AMF, and is expected to be entered into later today and settled on February 28, 2023.