Business
Transcontinental founder monetizes portion of shareholdings while preserving corporation's continuity and stability
Transcontinental founder monetizes portion of shareholdings while preserving corporation's contin...
About this update from Transcontinental Inc. Class A
[{"type":"text","content":"\n\n\n\n Aug. 10, 2010 (Canada NewsWire Group) -- \n\n \n \n \nTR.cnwUnderlinedCell TD {\n BORDER-BOTTOM: #000000 1px solid\n}\nTR.cnwDoubleUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px double\n}\nTR.cnwBoldUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px solid\n}\nTD.cnwUnderlinedCell {\n BORDER-BOTTOM: #000000 1px solid\n}\nTD.cnwDoubleUnderlinedCell {\n BORDER-BOTTOM: #000000 3px double\n}\nTD.cnwBoldUnderlinedCell {\n BORDER-BOTTOM: #000000 3px solid\n}\n\nMONTREAL, Aug. 10 /CNW Telbec/ - Transcontinental Inc. announced today that Rémi Marcoux, its Executive Chairman of the Board and Founder, has concluded, through his holding companies, a transaction to monetize a total of 4 million Transcontinental shares. The monetization transaction involves a forward contract concluded with a Canadian chartered bank referencing the closing price of Transcontinental Class A subordinate voting shares on August 9, 2010. Pursuant to this agreement, Mr. Marcoux's holding companies will maintain the beneficial ownership and voting rights attached to the monetized shares.\n"It has always been important to me to ensure the continuity and long-term stability of our operations for the benefit of our clients, our employees and our shareholders," said Mr. Marcoux. "The transaction announced today was designed in a prudent manner to allow both stability in Transcontinental's operations as well as long-term family succession planning."\nThis financial instrument allows Mr. Marcoux's holding companies to monetize approximately 30% of his aggregate participation in Transcontinental shares while maintaining effective control of the Corporation in the hands of the Marcoux family.\nThe number of shares subject to monetization are 4,000,000 Transcontinental shares from Mr. Marcoux's holding companies total of 13,209,840 Class B shares.\nPrior to the monetization, Transcontinental and Mr. Marcoux's holding companies completed a series of transactions involving an exchange of shares to crystallize the safe income attributable to the block of Transcontinental shares that were monetized. The exchange has no negative impact on the Corporation or its shareholders, nor does it give rise to any change to Class A subordinate voting shares and Class B shares. Mr. Marcoux's holding companies have assumed the costs related to these transact...