Alimentation Couche-Tard Inc. on Oct. 11 entered into a C$250 million buyback agreement with a unit of Metro Inc.
The Canadian convenience store operator plans to repurchase for cancellation 4,372,923 of its class B subordinate voting shares after converting the same number of class A multiple voting shares. The repurchase price was set at C$57.17 per class A share.
The buyback will be financed by Couche-Tard through its cash, existing revolving credit facilities and proceeds of the future sale of nonstrategic assets.
The transaction is subject to the approval of Canadian financial regulator Autorité des marchés financiers.
Investment firm Caisse de dépôt et placement du Québec also will purchase 11,369,599 class A shares held by Metro in a separate transaction.
Additionally, 11,369,599 class A shares held by Metro will be converted to subordinate shares and sold via a group of brokers.
The transactions above represent about 85% of the 32 million Couche-Tard shares that Metro holds and will leave the grocer with 5,114,923 of Couche-Tard shares.