CDPQ to Reduce Stake in Intact Financial with Share Sale
Deal News | Feb 18, 2025 | CDPQ
The Caisse de dépôt et placement du Québec (CDPQ) has announced its plan to sell 2,500,000 common shares of Intact Financial Corporation, representing around 1.4% of the company's total shares. This transaction, underwritten by CIBC Capital Markets and National Bank Financial, will result in gross proceeds of approximately $696.5 million. Despite the sale, CDPQ will retain a 6.6% stake, continuing as Intact's largest shareholder. The decision is part of CDPQ's regular portfolio rebalancing, aimed at monetizing returns while maintaining confidence in Intact's growth prospects. Intact's leadership expresses confidence in maintaining outstanding shareholder returns, reflecting on a decade-long record of 15% annualized total returns.
Sectors
- Investment Management
- Insurance
- Financial Services
Geography
- Canada – Both CDPQ and Intact Financial Corporation are based in Canada, with operations heavily rooted in this country.
- Québec – CDPQ is headquartered in Québec, and Intact has strategic operations based there.
Industry
- Investment Management – CDPQ's activity in selling shares is part of its investment management strategy and portfolio rebalancing.
- Insurance – Intact Financial Corporation is a leading player in the property and casualty insurance sector.
- Financial Services – The transaction involves financial institutions like CIBC Capital Markets and National Bank Financial.
Financials
- $696,500,000 – The expected gross cash proceeds from the sale of 2.5 million common shares.
- $278.60 per share – The gross price per share at which the common shares are being sold.
- 15% – The annualized total shareholder return delivered by Intact over the last decade.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| CDPQ | Seller | Company | CDPQ is a major institutional investor and the current largest shareholder of Intact Financial. |
| Intact Financial Corporation | Target Company | Company | Intact Financial Corporation is a leading provider of property and casualty insurance. |
| CIBC Capital Markets | Underwriter | Company | A division of CIBC, it provides a broad range of integrated credit and capital markets products, investment banking, and merchant banking. |
| National Bank Financial | Underwriter | Company | Part of the National Bank of Canada, it offers a variety of financial services including underwriting. |
| Vincent Delisle | Executive | Person | Executive Vice-President and Head of Liquid Markets at CDPQ. |
| Ken Anderson | CFO | Person | Executive Vice President and CFO of Intact Financial Corporation. |