BRP and Bombardier Business Aircraft United?
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11:30 (15:30 UTC) - March 21, 2018 - Quebec, Canada by Sylvain Faust
According to sources (s=more than one) the Beaudoin/Bombardier could be working to regroup and to extract/acquire a specific division from Bombardier Inc, maybe something like has been done with the BRP division years ago. (BRP is trading on the TSE under the symbol DOO and Bombardier Inc. under the symbols BBD.B and BBD.A. The Bombardier family, Bain Capital and the Caisse de depot et placement du Quebec have formed a corporation to buy the recreational products division, which includes the Ski-Doo snowmobile for $1.2 billion in 2003... now named BRP. more here)
The "Family" has been having strong discussions in the last few years about what to do. One of the options considered is to unite the current Bombardier "Business Aircraft" division from Bombardier Inc. into the BRP Company where the family is having a great success. Bombardier Business Aircraft division is the most profitable division of the company.
Still according to different sources, there is a strong will at the family level to let go totally Bombardier "Commercial" Aircraft, CSeries having been taken care of with Airbus, Q400 and CRJ would be next to let go. Some options would be on the tables. (where you read about Q400 being sold first? Yes, I know... I wrote it).
The Beaudoin/Bombardier would let go Bombardier "Transportation" as well. China? France? Germany? Options are there too. Remember China did offer already over $8 billion for Bombardier Transportation alone.
At the end of the day, we could end up with a leaner and meaner Bombardier... with no dual share issues?
What could happen to the current Bombardier Inc. shareholders, what kind of share payment/share exchange could be offered?
Certainly after selling Bombardier Transportation and assets such as Downsview, Bombardier Inc. shareholders could be left with no debt at all and maybe some portion of ownership still "a la CSeries" (from the sale of Transporation) added with BRP shares in exchanges of their current Bombardier Inc. shares? Many other scenarios are possible too.
Change is good... let's see if those changes will be good for all Bombardier Inc. shareholders..
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Sylvain Faust, Fliegerfaust