The Fund FTQ is trying to protect the headquarters of SNC-Lavalin

Le Fonds FTQ tente de protéger le siège social de SNC-Lavalin

The Fonds de solidarité FTQ has continued its efforts to protect the seats quebec social buying, in the last few months, shares of SNC-Lavalin and Waterfalls. The institution, however, has sold substantial shares in Bombardier.

The Fund has invested nearly $ 25 million in SNC-Lavalin at the start of 2020, will reveal its latest financial documents. The institution already owned for $ 45.4 million of shares of the company.

In December 2019, the giant montreal engineering had pleaded guilty to a charge of fraud in connection with projects in Libya and had agreed to pay a fine of $ 280 million. The settlement put an end to a series of legal-policy that has shaken the Trudeau government.

The Fonds FTQ has also purchased almost $ 28 million of shares of Cascades between the beginning of December and the end of may.

$500 Million

According to the information of the Newspaper, these investments are in the will of the Fonds de solidarité FTQ to play a role in the protection of the “jewels” of quebec. In April 2016, the Fund had announced its intention to invest $ 500 million in large listed companies by 2020.

“We do not claim that the Funds could in itself prevent a tender offer or block a transaction. […] But the Fund wants to send a signal. A signal to raise the capital from here and strengthen the detention of québec companies by interest quebec “, stated the CEO, Gaétan Morin.

The Fund currently holds for $ 307 million of shares of 14 québec companies that it considers strategic : Stella-Jones, Uni-Select, New Look, Richelieu Hardware, Waterfalls, Fiera Capital, SNC-Lavalin, GDI, MTY, Opsens, Savaria, Mediagrif, Tecsys and TFI.

Companies vulnerable

Three of them – SNC-Lavalin group, Stella-Jones, and Uni-Select are part of a group of 16 companies that the Institute on governance had been found to be vulnerable to a takeover foreign in 2016.

It should be noted that these 16 companies, two have since moved to outside of Quebec, Aimia and Amaya/Stars), while another has been sold to american interests (Tembec).

The Fund is also to sell two blocks of shares of Bomber – the first one had cost him nearly$ 50 Million in 2011, and the other, more than$ 37 Million in 2014-2015. These investments were however not part of the initiative to the headquarters, since Bombardier is protected by shares with multiple voting rights.

The Fund retains a participation of $ 912 000 in Bombardier in investment activities not specifically quebec.

SOME OF THE INVESTMENTS OF THE FUND QFL IN THE JEWELS QUEBEC “STRATEGIC”

  • Stella-Jones: $94 Million
  • Uni-Select: $56 Million
  • Vision New Look: $32 Million
  • Richelieu Hardware: $29 Million
  • Waterfalls: $28 Million
  • Fiera Capital: $27 Million
  • SNC-Lavalin: $25 Million
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