Quebecor Inc. (TSX:QBR.A)(TSX:QBR.B), Quebecor Media Inc. and the
Caisse de depot et placement du Quebec announced today the
completion of a $1.5 billion transaction, decreasing the Caisse's
interest in Quebecor Media from 45.3% to 24.6%.
"Our intention was to take advantage of the window of
opportunity created by the favourable conditions on the debt
markets to increase our interest in Quebecor Media. We believe in
the company's future. Repurchasing a portion of the Caisse's
investment, while we continue our partnership, will allow us to
benefit from the company's expected growth over the next few
years," said Pierre Karl Peladeau, President and Chief Executive
Officer of Quebecor, Quebecor Media and Sun Media Corporation.
"We are convinced of Quebecor Media's potential to create value.
For this reason, we are retaining a substantial stake in the
company. In our view, the conditions are right to rebalance our
portfolio by divesting a part of the major position we held in the
media and telecom sector," said Michael Sabia, President and Chief
Executive Officer of the Caisse.
By implementing its corporate strategy, Quebecor Media has more
than tripled its operating income since the transaction, reaching
more than $1.3 billion in 2011. This sustained growth has enabled
Quebecor Media to pay substantial dividends to its shareholders,
including a total of $324 million to the Caisse, since 2003.
Transaction highlights
-- Repurchase by Quebecor Media Inc. of 20,351,307 shares of Quebecor Media
Inc. held by the Caisse de depot et placement du Quebec, for an
aggregate purchase price of $1.0 billion, payable in cash.
-- Purchase by Quebecor Inc. of 10,175,653 shares of Quebecor Media Inc.
held by the Caisse, in consideration of the issuance by Quebecor Inc. of
a $500 million aggregate principal amount of subordinated convertible
debentures which are convertible into Quebecor Inc. Class B Subordinate
Shares.
-- The parties have valued the Caisse's 45.3% interest in Quebecor Media
Inc. at $2.75 billion, pursuant to negotiations between them.
-- Upon completion of the transaction, the Caisse's interest in Quebecor
Media Inc. will decrease from 45.3% to 24.6%, while that of Quebecor
Inc. in Quebecor Media Inc. will increase from 54.7% to 75.4%.
Quebecor Media: A key player in the Quebec economy
Quebecor Media is today one of Quebec's top five private
employers. It has over 12,000 employees in Quebec and an annual
payroll in excess of $600 million. At Videotron specifically, more
than 4,450 jobs were created in leading-edge sectors since the
acquisition, in addition to some 2,500 jobs with the outsourcers
and consultants who work directly for the company.
Videotron also invested more than $1 billion in developing a
wireless telephone infrastructure, which increased competitiveness
and lowered prices in this sector. This is in addition to the
substantial improvement in Videotron's customer service, increase
in the supply of information resulting from the launch of several
newspapers, the promotion of Quebec's television and musical
heritage, and an annual philanthropic contribution of close to $30
million benefiting approximately 400 organizations.
Forward-Looking Statements
The statements in this press release that are not historical
facts are forward-looking statements and are subject to significant
known and unknown risks, uncertainties and assumptions which could
cause Quebecor's actual results for future periods to differ
materially from those set forth in the forward-looking statements.
Forward-looking statements may be identified by the use of the
conditional or by forward-looking terminology such as the terms
"plans," "expects," "may," "anticipates," "intends," "estimates,"
"projects," "seeks," "believes" or similar terms, variations of
such terms or the negative of such terms. Certain factors that may
cause actual results to differ from current expectations include
seasonality (including seasonal fluctuations in customer orders),
operating risk (including fluctuations in demand for Quebecor's
products and pricing actions by competitors), insurance risk, risks
associated with capital investment (including risks related to
technological development and equipment availability and
breakdown), environmental risks, risks associated with labour
agreements, risks associated with commodities and energy prices
(including fluctuations in the cost and availability of raw
materials), credit risk, financial risks, debt risks, risks related
to interest rate fluctuations, foreign exchange risks, risks
associated with government acts and regulations, risks related to
changes in tax legislation, and changes in the general political
and economic environment. Investors and others are cautioned that
the foregoing list of factors that may affect future results is not
exhaustive and that undue reliance should not be placed on any
forward-looking statements. For more information on the risks,
uncertainties and assumptions that could cause Quebecor's actual
results to differ from current expectations, please refer to
Quebecor's public filings available at less than
www.sedar.comgreater than and less than www.quebecor.comgreater
than including, in particular, the "Risks and Uncertainties"
section in Quebecor's Management Discussion and Analysis for the
year ended December 31, 2011, and the "Item 3. Key Information -
Risk Factors" as well as statements located elsewhere in Quebecor
Media's annual report on Form 20-F for the year ended December 31,
2011.
The forward-looking statements in this press release reflect
Quebecor's expectations as at October 3, 2012, and are subject to
change after that date. Quebecor expressly disclaims any obligation
or intention to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by applicable securities laws.
About Quebecor Inc. and Quebecor Media Inc.
Quebecor Inc. (TSX:QBR.A)(TSX:QBR.B) is a holding company with a
54.7% interest in Quebecor Media Inc., one of Canada's largest
media groups, with more than 16,000 employees. Quebecor Media Inc.,
through its subsidiary Videotron Ltd., is an integrated
communications company engaged in cable television, interactive
multimedia development, Internet access services, cable telephone
services and mobile telephone services. Through Sun Media
Corporation, Quebecor Media Inc. is the largest publisher of
newspapers in Canada. It also operates Canoe.ca and its network of
English and French language Internet properties in Canada. In the
broadcasting sector, Quebecor Media Inc. operates, through TVA
Group Inc., the number one French language general interest
television network in Quebec, a number of specialty channels and
the SUN News English language channel. Another subsidiary of
Quebecor Media Inc., Nurun Inc., is a major interactive
technologies and communications agency with offices in Canada, the
United States, Europe and Asia. Quebecor Media Inc. is also active
in magazine publishing (TVA Publishing Inc.), book publishing and
distribution (Sogides Group Inc. and CEC Publishing Inc.), the
production, distribution and retailing of cultural products
(Archambault Group Inc. and TVA Films), video game development
(BlooBuzz Studios, L.P.), DVD, Blu-ray disc and videogame rental
and retailing (Le SuperClub Videotron Ltd), the printing and
distribution of regional newspapers and flyers (Quebecor Media
Printing Inc. and Quebecor Media Network Inc.), news content
production and distribution (QMI Agency), multiplatform advertising
solutions (QMI Sales) and the publishing of printed and online
directories, through Quebecor MediaPages(TM).
About the Caisse de depot et placement du Quebec
The Caisse de depot et placement du Quebec is a financial
institution that manages funds primarily for public and private
pension and insurance plans. As at December 31, 2011, it held $159
billion in net assets. As one of Canada's leading institutional
fund managers, the Caisse invests in major financial markets,
private equity and real estate. For more information:
www.lacaisse.com.
Contacts: Quebecor Media Martin Tremblay Vice-President, Public
Affairs 514.380.1985martin.tremblay@quebecor.com Caisse de depot et
placement du Quebec Maxime Chagnon Senior Director, Media Relations
514.847.5493mchagnon@lacaisse.com
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