CGI Founder Sells $185.4M Worth of Shares

CGI has entered into a private agreement to purchase 250 million Canadian dollars ($185.4 million) worth of shares from its founder and executive chairman.

Strategic Decision

The company plans to buy approximately 1.7 million class A voting shares indirectly held by Serge Godin at C$149.26 each, representing a 3% discount to the previous day's closing price. The buyback will be financed using cash reserves.

Immediate Shareholder Value

According to Michael Pedersen, chairman of a board special committee overseeing the transaction, this strategic move provides an opportunity to repurchase shares at a discounted rate, offering immediate value to shareholders.

Ownership Adjustments

The sale, made for estate-planning purposes, will result in Serge Godin's ownership of the company dropping to just over 53% of total voting rights and 10.5% of issued and outstanding shares, down from over 54% and 11.1%, respectively.

Share Buyback Program

In addition to this deal, CGI has announced plans to renew a share-buyback program aimed at repurchasing up to 10% of its issued and outstanding common shares within the next year.