CGI Intends To Repurchase $250 Mln Of Class A Shares

(RTTNews) - CGI Group Inc.(GIB, GIB-A.TO), IT and business consulting services firm, announced on Friday that it intends to ink a private deal with its Founder and Executive Chairman, Serge Godin, to repurchase 1,674,930 class A shares held by him at a $149.26 per class A share for $250 million.

The price represents a discount of 3 percent to the closing price of the class A shares on the Toronto Stock Exchange on February 22.

The company will fund the repurchase from its own cash.

The transaction is entered into by Godin for estate planning purposes.

Post transaction, there will be 206,130,115 class A shares and 25,179,340 class B shares of CGI issued and outstanding.

Godin will continue to own over 53 percent of the total voting rights and 10.5 percent of the CGI issued and outstanding shares compared with 54.3 percent and 11.1 percent respectively prior to the transaction.

CGI is authorized to repurchase up to 20,457,737 class A shares until the earlier of February 5, 2025.