Facts on the Caisse's investment in the Montreal, Maine & Atlantic Railway Corporation

MONTREAL, July 8, 2013 /CNW Telbec/ - The Caisse de dépôt et placement du Québec today provided the following facts regarding its investment in the Montreal, Maine & Atlantic Railway Corporation (MM&A).

  • The Caisse became a minority shareholder when MM&A was founded by Edward Burkhardt in 2003.
  • Its initial investment was $14.7 million:
    • $7 million in share capital; and
    • a $7.7-million loan.
      • The loan was fully repaid in 2011 after a portion of the Corporation's assets was sold.
  • Since 2008, the value of the Caisse's investment has been practically nil.
  • In 2011, MM&A was put up for sale. As a result of a non-transferable loan provided by a U.S. government agency, a transaction with a third party could not be carried out.

As at December 31, 2012:

  • The value of the Caisse's holdings is practically nil (about $1,000).
  • The Caisse's holdings as a percentage: 12.77%
    • Majority shareholder: Earlston Associates Limited/Edward Burkhardt (72.78%).
  • The Caisse appointed a director to the board.
    • Yves Bourdon, a former CN manager, has been on the MM&A board since 2003.

The Caisse also made the following statement:

"All the thoughts of the Caisse's employees are with the people of Lac-Mégantic and their families.

To help them rebuild their community, the Caisse and its subsidiary Ivanhoé Cambridge are offering the people and the City of Lac-Mégantic the services of their experts in real estate and urban development, including the retail and residential sectors. 

Furthermore, on behalf of its employees, the Caisse, following Desjardins Group and National Bank, will be making a $100,000 donation to the Red Cross to help the residents of Lac-Mégantic."

The Caisse de dépôt et placement du Québec is a financial institution that manages funds primarily for public and private pension and insurance plans. As at December 31, 2012, it held $176.2 billion in net assets. As one of Canada's leading institutional fund managers, the Caisse invests in major financial markets, private equity, infrastructure and real estate globally. For more information: www.lacaisse.com.

SOURCE Caisse de dépôt et placement du Québec

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