CGI to Buy C$250 Million Shares Held by Executive Chairman Serge Godin

By Robb M. Stewart

CGI struck a private agreement to buy 250 million Canadian dollars ($185.4 million) worth of shares held by the information technology and business consultancy firm's founder and executive chairman.

The company said it plans to buy for cancellation roughly 1.7 million class A voting shares indirectly held by Serge Godin at C$149.26 each, a 3% discount to Thursday's closing price. The buyback will be funded from cash on hand.

"This strategic transaction presented a good opportunity to repurchase shares at a discount and offers immediate value to our shareholders," said Michael Pedersen, chairman of a board special committee set up in connection with the proposed stock purchase.

The company said Godin is selling the shares for estate-planning purposes. The sale will see his ownership of the company slip to control over 53% of the total voting rights and 10.5% of the issued and outstanding shares, from just over 54% and 11.1%, respectively.

In late January, CGI said it intends to renew a share-buyback program for up to 10% of its issued and outstanding common shares over the course of one year.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

February 23, 2024 07:02 ET (12:02 GMT)

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