BRP (TSX:DOO) announced the preliminary results of its substantial issuer bid, pursuant to which BRP offered to purchase for cancellation a number of its subordinate voting shares for an aggregate purchase price not to exceed $350 million. The SIB expired at 11:59 p.m. (Montreal time) yesterday, July 17.
Based on the preliminary count by Computershare Trust Company of Canada, as depositary for the SIB, BRP expects to take up and pay for 8,599,505 shares at a price of $40.70 per share under the SIB, representing an aggregate purchase price of approximately $350 million and 7.7 percent of the total number of BRP's issued and outstanding shares and multiple voting shares before giving effect to the SIB.
The full details of the SIB are described in the offer to purchase and issuer bid circular dated June 12, as well as the related letter of transmittal and notice of guaranteed delivery, copies of which were filed and are available on SEDAR at www.sedar.com.
2,442,364 shares were validly tendered and not withdrawn pursuant to auction tenders at or below the purchase price and purchase price tenders. Since the SIB was oversubscribed, shareholders who made auction tenders at or below the purchase price and purchase price tenders will have the number of shares purchased prorated following the determination of the final results of the SIB. BRP currently expects that shareholders who made auction tenders at or below the purchase price and purchase price tenders will have approximately 98.2 percent of their tendered shares purchased by BRP. BRP expects to take up and purchase 6,202,074 shares pursuant to proportionate tenders.
Holders of multiple voting shares were entitled to participate in the SIB. Multiple voting shares taken up by BRP will be converted into shares on a one-for-one basis immediately prior to take up. Beaudier Inc., 4338618 Canada Inc. and Bain Capital Luxembourg Investments S.à r.l., which collectively hold approximately 65.2 percent of BRP's issued and outstanding shares, made proportionate tenders in connection with the SIB and they will maintain their proportionate equity ownership in BRP following completion of the SIB.
After giving effect to the SIB, BRP expects to have 30,378,809 shares and 72,952,052 multiple voting shares issued and outstanding.
The number of shares to be purchased, the proration factor and the purchase price under the SIB are preliminary. Final results will be determined subject to confirmation by the depositary of the proper delivery of the shares validly tendered and not withdrawn. Upon take up and payment of the shares purchased, BRP will release the final results, including the final proration factor.
This press release is for informational purposes only and does not constitute an offer to buy or the solicitation of an offer to sell BRP's shares.