CAE as announced two common share placement agreements for a total amount of $ 450 million Canadian. First, CAE and the Caisse de dépôt et placement du Québec entered into a private placement agreement of $ 150 million. The Caisse will acquire nearly 5,026,000 new common shares at a unit cost of $ 29.85. CAE also entered into a $ 300 million public placement agreement. The agreement provides for the marketing of 10,060,000 new common shares at $ 29.85.
Regarding the two offerings, CAE states:
CAE intends to use the net proceeds of the offering and the concurrent private placement for general corporate purposes. It will also use it to fund its potential future growth and acquisition opportunities. This includes financing of the acquisition of Flight Simulation Company BV ”
These two share offerings allow CAE to raise additional capital to seize business opportunities that arise. CAE has also announced that it is acquiring Flight Simulation Company which is based in Amsterdam. This company was founded in 2005 and has 12 flight simulators. Aircraft types are A320ceo and neo, B737-300 and 800, B747-400, B787-9 and E190. The acquisition cost is 70 million euros or approximately 108 million Canadian dollars.
“This acquisition enhances CAE’s ability to provide training services to customers operating in Europe, including airlines and freight carriers. It allows him to take advantage of a larger customer base and to leverage a well-established company that specializes in recurrent training and which greatly complements CAE’s network. “
So expect CAE to make another acquisition in the coming months.>>> Follow us on Facebook and Twitter