CGI founders to monetize portion of shareholding while protecting CGI's destiny
May 07 2008 - 8:25AM
PR Newswire (US)
Stock Market Symbols GIB.A (TSX) GIB (NYSE) MONTREAL, May 7
/PRNewswire-FirstCall/ -- CGI Group Inc. (TSX: GIB.A; NYSE: GIB)
announced today that Serge Godin, Founder and Executive Chairman of
the Board and Andre Imbeau, Founder, Executive Vice-Chairman of the
Board and Corporate Secretary have entered into a transaction to
monetize a total of 11 million CGI shares. This transaction, which
involves forward contracts referencing the closing price of CGI
Class A shares on May 6, 2008, was entered into with a Canadian
chartered bank. As a result of the arrangement, the beneficial
ownership and voting rights associated with the shares will remain
with Serge Godin and Andre Imbeau. "This personal transaction by
the Founders and the vehicle utilized ensure the continuity and
stability of our operations for the benefit of CGI clients, members
and shareholders," said Michael E. Roach, CGI President and Chief
Executive Officer. "Today's transaction has been prudently designed
to both provide stability to CGI and long-term family estate
planning for us," added Serge Godin. "This vehicle allows Andre and
I to monetize approximately 30% of our aggregate ownership in CGI
shares and vested options while maintaining effective control of
the company in the hands of management. At the end of the contract
term in 25 years, or in the event of its earlier termination, we
can elect to deliver the contract value either in shares or in
cash." The amounts below represent the number of shares subject to
monetization: Serge Godin 8,500,000 shares of CGI Group Inc. from
total holdings of 28,576,489 Class B shares, 600,600 Class A shares
and 1,877,730 vested options Andre Imbeau 2,500,000 shares of CGI
Group Inc. from total holdings of 4,275,659 Class B shares, 253,976
Class A shares and 881,225 vested options About CGI Founded in
1976, CGI Group Inc. is one of the largest independent information
technology and business process services firms in the world. CGI
and its affiliated companies employ approximately 27,000
professionals. CGI provides end-to-end IT and business process
services to clients worldwide from offices in Canada, the United
States, Europe, Asia Pacific as well as from centers of excellence
in North America, Europe and India. CGI's annual revenue run rate
stands at $3.8 billion and at March 31st, 2008, CGI's order backlog
was $12.04 billion. CGI shares are listed on the TSX (GIB.A) and
the NYSE (GIB) and are included in the S&P/TSX Composite Index
as well as the S&P/TSX Capped Information Technology and MidCap
Indices. Website: http://www.cgi.com/. Forward-Looking Statements
All statements in this press release that do not directly and
exclusively relate to historical facts constitute "forward-looking
statements" within the meaning of that term in Section 27A of the
United States Securities Act of 1933, as amended, and Section 21E
of the United States Securities Exchange Act of 1934, as amended,
and are "forward-looking information" within the meaning of
sections 138.3 and following of the Ontario Securities Act, as
amended. These statements and this information represent CGI Group
Inc.'s ("CGI") intentions, plans, expectations and beliefs, and are
subject to risks, uncertainties and other factors, of which many
are beyond the control of the Company. These factors could cause
actual results to differ materially from such forward-looking
statements or forward-looking information. These factors include
and are not restricted to the timing and size of new contracts,
acquisitions and other corporate developments; the ability to
attract and retain qualified members; market competition in the
rapidly-evolving information technology industry; general economic
and business conditions, foreign exchange and other risks
identified in the Management's Discussion and Analysis ("MD&A")
in CGI's Annual Report on Form 40-F filed with the U.S. Securities
and Exchange Commission (filed on EDGAR at http://www.sec.gov/),
and in CGI's annual and quarterly MD&A and Annual Information
Form filed with the Canadian securities authorities (filed on SEDAR
at http://www.sedar.com/), as well as assumptions regarding the
foregoing. The words "believe," "estimate," "expect," "intend,"
"anticipate," "foresee," "plan," and similar expressions and
variations thereof, identify certain of such forward-looking
statements or forward-looking information, which speak only as of
the date on which they are made. In particular, statements relating
to future performance are forward-looking statements and
forward-looking information. CGI disclaims any intention or
obligation to publicly update or revise any forward-looking
statements or forward-looking information, whether as a result of
new information, future events or otherwise, except as required by
applicable by law. Readers are cautioned not to place undue
reliance on these forward-looking statements or on this
forward-looking information. DATASOURCE: CGI GROUP INC. CONTACT:
Lorne Gorber, Vice-President, Global Communications and Investor
Relations, (514) 841-3355
Copyright