Bombardier, Great Canadian Gaming et Shell
Transportation (BBD.B, $ 0.46) says it has signed a contract with TransLink to build 205 new cars for Vancouver’s SkyTrain transit system. The deal announced Monday is valued at $ 721 million and includes options for an additional 400 units. These cars will be designed by company teams in Saint-Bruno, a southern suburb of Montreal, as well as in Kingston, Ontario. Assembly will take place in Kingston. Kevin Desmond, CEO of Translink, the company that operates transit systems in Vancouver, said in a statement that this was the largest supply order ever. Bombardier designed and supplied the original system for the SkyTrain.
New York-based investment fund Apollo Global Management has succeeded in rallying major shareholders of Great Canadian Gaming Corporation (GC, $ 43.64) as part of its attempt to shut down the capital of this company which operates among other casinos by increasing its offer to $ 45 per share, a 15.4% increase over its previous offer of $ 39 per share, which convinced some large shareholders such as Toronto-based BloombergSen, which threatened to oppose the deal. “Raising the price to $ 45 per share provides greater shareholder value,” Great Canadian Chairman Peter Meredith said in a statement on Monday. Apollo’s latest offer is near the price the Great Gaming title traded last February, before restrictions were imposed on the 26 company-operated gaming and entertainment establishments nationwide due to the COVID pandemic -19. The vast majority of its establishments are now closed due to government measures aimed at curbing the spread of the new coronavirus. On the Toronto Stock Exchange Monday morning, Great Canadian, headquartered in British Columbia, was trading at around $ 43.50, up about 17%. Great Canadian shareholders will vote on the deal at a meeting scheduled for Wednesday. Great Canadian says shareholders holding approximately 50% of its outstanding shares have entered into voting agreements and have committed to supporting the most recent offer. Major Great Canadian shareholders, such as BloombergSen, CI Global Asset Management and Burgundy Asset Management, opposed Apollo’s offer. They changed their minds in the wake of the enhanced proposal.
Oil giant Royal Dutch Shell (RDSA, € 14.48) announced on Monday that it would drop an after-tax charge of US $ 3.5 billion to US $ 4.5 billion for write-downs and restructurings amid bleak outlook for the industry oil tanker. The adjusted results of oil and gas drilling activities should show a loss “in view of the current context for oil prices”, underlines in particular Shell in a press release. Prices have fallen sharply this year due to the coronavirus pandemic which has plummeted demand for hydrocarbons. Shell recalls that its cash flow reacts to changes in oil and gas prices to the tune of $ 6 billion per year per change of ten dollars. Oil and gas production is also expected to have suffered from a hurricane in the Gulf of Mexico and mild weather in northern Europe in the first half of the fourth quarter, the statement said. The group points out that the use of its refineries is expected to be between 72% and 76% for the quarter, indicating weak demand. The hydrocarbon giant had returned to the green in the third quarter and intends to reward its shareholders, after an abysmal loss in the previous quarter due to the collapse of prices caused by the pandemic.
Bombardier, Great Canadian Gaming et Shell - /10