CDPQ becomes Alstom's largest shareholder following the announced acquisition of Bombardier Transportation

• CDPQ's total investment in Alstom will amount up to ?2.78 billion (CAD 4.0 billion)
• At the transaction's closing, CDPQ will hold around 18% of Alstom's shares and two seats on the Board of Directors
• Alstom strengthens its leadership in sustainable mobility, a promising sector that benefits from strong trends related to urbanization and climate change
• Strengthened presence and growth opportunities in Québec ? with headquarters for the Americas, overseeing the work of 13,000 employees

MONTRÉAL, Feb. 17, 2020 /PRNewswire/ - As part of Alstom's proposed acquisition of Bombardier Transportation, Caisse de dépôt et placement du Québec (CDPQ) today announced the conclusion of an agreement with Alstom to convert its current investment in Bombardier Transportation into shares of Alstom. CDPQ also announced an additional investment of ?700 million in Alstom. CDPQ's total investment will range from ?2.63B to ?2.78B, depending on closing conditions. Alstom shares will be acquired by CDPQ at ?44.45 per share.

With this transaction, CDPQ will become the largest shareholder of the new Alstom, with a stake of around 18% in the company, depending on financing and closing conditions. As such, CDPQ will appoint two representatives to sit on the company's Board of Directors as well as a Board observer.

The transaction announced today is the result of a thorough analysis and discussions that started several months ago. "The combination of Bombardier Transportation and Alstom, which is recognized for its capacity to manage and execute projects, strengthens the company's global leadership in sustainable mobility. It's an investment in a company that is well positioned to harness the growth of a promising sector ? which is perfectly aligned with our strategy and will produce attractive returns for our depositors over the long term," said Charles Emond, President and Chief Executive Officer of CDPQ.

"In addition to the significant potential to create value for our depositors, this transaction provides opportunities to grow and develop expertise in Québec, in a thriving sector that will benefit from urbanization in many parts of the world and growing climate change concerns," added Mr. Emond.

The value of CDPQ's holdings in Bombardier Transportation, which will be converted into shares of Alstom, reflects the 15% annual return set out in the initial investment structure.

In the context of its agreement with CDPQ, Alstom also announced its intention to strengthen its presence in Québec through ambitious commitments that will be implemented in the first year following the transaction's closing. These commitments include establishing the Americas' headquarters in Greater Montréal, where a Head of the Americas will be based; a new design and engineering centre and centre for high-tech R&D; and the expansion of activities through increased opportunities for the La Pocatière and Sorel-Tracy manufacturing facilities.

This transaction is expected to close in the first half of 2021. All the details of the transaction, which is subject to regulatory approval and the closing conditions of the agreement, are available in the news releases issued by Alstom and Bombardier Inc.

HSBC acted as financial advisor, and McCarthy Tétrault LLP and Freshfields Bruckhaus Deringer LLP acted as legal advisors to CDPQ in this transaction.

ABOUT CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC
Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at June 30, 2019, it held CA$326.7 billion in net assets. As one of Canada's leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.

SOURCE Caisse de dépôt et placement du Québec