Latest news with #Quebecor
Globe and Mail
15-07-2025
- Business
- Globe and Mail
Transat shareholders deserved a vote in the federal government's bailout
Pierre Karl Péladeau deserved better when he tried to buy airline Transat A.T. Inc TRZ-T. We can debate whether the telecom and media billionaire and former Parti Québécois leader would be a good pilot at the debt-heavy carrier. But like a lot of people, I've learned to never underestimate PKP. There's no debate shareholders in Montreal-based Transat deserved an opportunity to vote on a restructuring that froze out Mr. Péladeau, one of the company's largest investors, and instead increased the federal government's stake in the airline. The recapitalization of Transat that closed on July 10 used loopholes in pandemic-era legislation to ride roughshod over basic shareholder rights. This month's reworking of Transat's finances has its roots in worst days of the COVID-19 pandemic, when the company tapped a federal loan program, the Large Enterprise Emergency Funding Facility or LEEFF. Rival Westjet Airlines never took government money, while Air Canada paid back their loans. At the start of this summer, Transat still owed $772-million under the federal loan program. Repaying the loan and other debt weighed heavy on the airline's stock price. Transat shares traded at $1.65 in early June, just before the recapitalization announcement. Mr. Péladeau, who owns 9 per cent of Transat through family holding company Financière Outremont, offered to buy the company numerous times, including an offer of $2.64 per share. Quebecor Inc.'s chief executive officer, an experienced hand at negotiating with government, clearly saw an opportunity to snap up the airline, then work with Ottawa to fix the balance sheet. He hired investment bank Canaccord Genuity Group Inc. to advise on the bid. Instead of falling into Mr. Péladeau arms, Transat and LEEFF's operator – the Canada Enterprise Emergency Funding Corp. or CEEFC – announced a sweeping recapitalization on June 4. The federal agency forgave almost half the money owed to taxpayers, cutting the LEEFF loan to $334-million and reducing the interest rate. In return, CEEFC received convertible preferred shares in Transat representing a 19.9-per-cent stake in the airline. 'CEEFC has worked closely with Transat to ensure it meets its obligations under the LEEFF program while supporting the company's continued commercial viability in a competitive market,' said Elizabeth Wademan, chief executive officer of CEEFC parent company Canada Development Investment Corp, in a June press release. Contra Guys: We'll wait till we see clearer skies for this airline The federal government also owns warrants in Transat that date back to the original LEEFF loan in 2021. Add the warrants to the preferred shares and the federal government has a 32.6-per-cent stake in Transat on a fully diluted basis. A stake that size effectively blocks a hostile Transat takeover. In late June, Mr. Péladeau went to the Quebec Superior Court, asking Transat to hold a shareholder vote on a transaction that he alleged transferred control of the airline to the federal government. He didn't ask to overturn the deal with CEEFC. He simply asked the owners be allowed to approve a recapitalization that massively diluted their stakes. Mr. Péladeau lost the court fight. Transat successfully argued it relied on exemptions to regulations protecting the rights of minority shareholders, which are loopholes reflecting pandemic financing rules. The airline also won court support for its argument that CEEFC cannot control the company. As part of the restructuring, CEEFC pledged it would cap its exercise of warrants and preferred shares so the federal government never owns more than 19.9 per cent of Transat's common shares at any time. In any normal transaction, shareholders get a vote on a debt-for-equity swap that sees a creditor get 19.9 per cent of their company, and an overall interest that amounts to nearly a third of the company. The company and the courts denied Transat shareholders this basic right. Would Transat's owners have spurned the CEEFC proposal for a takeover offer from Mr. Péladeau? That's now an academic question. The CEEFC refinancing failed to fix all that ails the airline. 'Transat no longer faces a potential liquidity issue,' said analyst Konark Gupta at Scotiabank in a recent report. 'That said, its absolute debt levels relative to its EBITDA profile, even after this refinancing, makes for a volatile equity.' In Quebec, where business battles frequently have political overtones, the federal government is now playing a kingmaker at a flagship airline co-founded by Premier François Legault. The courts denied Transat shareholders a voice in the transaction that created this situation. If Transat hits turbulence, Mr. Péladeau has every right to remind investors who could have been the pilot.
Yahoo
18-05-2025
- Business
- Yahoo
Quebecor Inc. (TSE:QBR.A) Looks Like A Good Stock, And It's Going Ex-Dividend Soon
Quebecor Inc. (TSE:QBR.A) stock is about to trade ex-dividend in 4 days. The ex-dividend date is usually set to be two business days before the record date, which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. This means that investors who purchase Quebecor's shares on or after the 23rd of May will not receive the dividend, which will be paid on the 17th of June. The company's next dividend payment will be CA$0.35 per share, and in the last 12 months, the company paid a total of CA$1.40 per share. Looking at the last 12 months of distributions, Quebecor has a trailing yield of approximately 3.6% on its current stock price of CA$39.04. If you buy this business for its dividend, you should have an idea of whether Quebecor's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing. Our free stock report includes 1 warning sign investors should be aware of before investing in Quebecor. Read for free now. Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. That's why it's good to see Quebecor paying out a modest 40% of its earnings. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. Fortunately, it paid out only 34% of its free cash flow in the past year. It's positive to see that Quebecor's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. View our latest analysis for Quebecor Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. This is why it's a relief to see Quebecor earnings per share are up 8.9% per annum over the last five years. Management have been reinvested more than half of the company's earnings within the business, and the company has been able to grow earnings with this retained capital. We think this is generally an attractive combination, as dividends can grow through a combination of earnings growth and or a higher payout ratio over time. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. In the last 10 years, Quebecor has lifted its dividend by approximately 40% a year on average. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders. Has Quebecor got what it takes to maintain its dividend payments? Earnings per share have been growing moderately, and Quebecor is paying out less than half its earnings and cash flow as dividends, which is an attractive combination as it suggests the company is investing in growth. We would prefer to see earnings growing faster, but the best dividend stocks over the long term typically combine significant earnings per share growth with a low payout ratio, and Quebecor is halfway there. Quebecor looks solid on this analysis overall, and we'd definitely consider investigating it more closely. With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. Our analysis shows 1 warning sign for Quebecor and you should be aware of it before buying any shares. Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Cision Canada
08-05-2025
- Business
- Cision Canada
Quebecor Inc. announces election of directors Français
MONTRÉAL, May 8, 2025 /CNW/ - In accordance with the TSX Company Manual, Quebecor Inc. (TSX: QBR.A) (TSX: QBR.B) is issuing this news release to disclose the voting results for the election of directors held at its Annual Meeting of Shareholders held today. All of the proposed nominees were duly elected as directors of the Corporation by the shareholders present or represented by proxy at the meeting. The results of the vote were as follows: CLASS "B" DIRECTORS ** VOTES FOR % VOTES WITHHELD % Chantal Bélanger 119,809,865 98.26 2,123,655 1.74 Frantz Saintellemy 121,142,665 99.35 790,855 0.65 * Elected by the Class "A" shareholders ** Elected by the Class "B" shareholders About Quebecor Quebecor, a Canadian leader in telecommunications, entertainment, news media and culture, is one of the best-performing integrated communications companies in the industry. Driven by their determination to deliver the best possible customer experience, all of Quebecor's subsidiaries and brands are differentiated by their high-quality, multiplatform, convergent products and services. Québec-based Quebecor (TSX: QBR.A, QBR.B) employs more than 11,000 people in Canada. A family business founded in 1950, Quebecor is strongly committed to the community. Every year, it actively supports more than 400 organizations in the vital fields of culture, health, education, the environment and entrepreneurship.
Toronto Star
08-05-2025
- Business
- Toronto Star
Quebecor CEO warns of grim future for TVA Sports amid rising cost of broadcast rights
The chief executive of Quebecor Inc. warned Thursday that the company's French-language sports television programming could be in jeopardy amid rising costs for broadcasting rights. Speaking at the company's annual general meeting, Quebecor president and CEO Pierre Karl Péladeau said that TVA Sports, a specialty channel operated by Quebecor Media-subsidiary TVA Group, continues to lose money.
Winnipeg Free Press
08-05-2025
- Business
- Winnipeg Free Press
Quebecor reports $190.7M Q1 profit, up from $173.2M a year earlier
MONTREAL – Quebecor Inc. reported its first-quarter profit rose compared with a year ago. The telecommunications and media company says its net income attributable to shareholders totalled $190.7 million or 82 cents per share for the quarter ended March 31. The result compared with a profit of $173.2 million or 75 cents per share in the first three months of 2024. Revenue for the quarter totalled $1.34 billion, down from $1.36 billion last year. On an adjusted basis, Quebecor says its income from operating activities amounted to 80 cents per share, up from an adjusted profit of 71 cents per share in the first quarter of 2024. Quebecor chief executive Pierre Karl Péladeau says the company continues to gain market share while 'consolidating its position as the most profitable player in the sector.' Winnipeg Jets Game Days On Winnipeg Jets game days, hockey writers Mike McIntyre and Ken Wiebe send news, notes and quotes from the morning skate, as well as injury updates and lineup decisions. Arrives a few hours prior to puck drop. This report by The Canadian Press was first published May 8, 2025. Companies in this story: (TSX:QBR.B)
