CGI to repurchase 5.16 million shares from la Caisse

Management and technology firm CGI intends to enter into a private agreement with Caisse de dépôt et placement du Québec (la Caisse) for the purchase for cancellation of 5,158,362 of its Class A subordinate voting shares at $96.93 per share. The price is a discount on the closing price on June 11.

The transaction is part of la Caisse’s periodic portfolio restructuring. The institutional investor is the second largest pension fund in Canada, and manages several public and parapublic pension plans and insurance programs in Quebec. La Caisse managed $309.5 billion in assets as of December 31, 2018.

After the deal is complete, la Caisse will continue to own approximately 37.4 million Class A shares – about 13.9% of CGI’s total outstanding shares.

“CGI has delivered excellent results for its shareholders, and this transaction is an opportunity to monetize a portion of our investment in the company to the benefit of our depositors," Charles Émond, executive vice president and head of Québec investments and global strategic planning at la Caisse, said. "Following this transaction, we will continue as a significant shareholder of the company, and given the long-term nature of this investment, we intend to remain so to support the growth of this information technology leader.

“CGI is well positioned to continue its success at home and in international markets," Émond added.

François Boulanger, CGI's executive vice president and chief financial officer, CGI, commented, “We remain very well positioned to continue executing our Build and Buy profitable growth strategy through our strong cash flow generation and access to our credit facility."

CGI’s share prices have seen strong growth over the past five years, rising from $37 in June 2014 to over $100 this month.

CGI shares gained 0.8% following the announcement of the repurchase deal.

Increasing demand for IT and consulting services has seen the Montreal-based company grow its employee base to 77,000 globally, with $11.5 billion in annual revenues.

Related: Énergir CEO Sophie Brochu joins CGI's board of directors