Already one of the largest shareholders of BRP, the Caisse de depot et placement du Québec has increased its stake in the Valcourt recreational vehicle manufacturer by tens of millions of dollars for three weeks.
Posted at 6:00 a.m.
The Caisse notably bought large blocks of BRP shares on June 3 and during the following session when the stock fell sharply after the unveiling of the company’s performance at the start of the fiscal year.
In addition to these purchases made this month, the Caisse bought large blocks of BRP shares during the sessions of May 24 and 25. The largest institutional investor in Quebec bought $50 million worth of BRP shares between May 24 and June 6.
These transactions carried out on the weakness of the title are recorded while a particularly acute episode of volatility hits the stock market as a whole.
Before these recent purchases on the market this spring, the Caisse already held 4.8 million shares with multiple voting rights in BRP. The Caisse’s total stake in BRP shares now stands at nearly 13%, making it one of the largest shareholders along with Bain Capital, Fidelity, Mackenzie and the Beaudier Group (Beaudoin/Bombardier family).
The purchase of BRP shares is made for investment purposes and the Caisse could increase or decrease this investment depending on market conditions or other relevant factors, according to a document filed with the authorities.
True to form when it makes significant stock market investments, the Caisse specifies that, as a BRP shareholder, it may enter into discussions with other shareholders or with BRP’s management and board of directors concerning business, operations or future plans of the company.
The Caisse’s decision to increase its stake in BRP comes as management prepares to specify its financial targets. BRP’s top executives are in Orlando on Wednesday to talk with investors and try to improve visibility to reassure shareholders and analysts.
The CEO, José Boisjoli, the chief financial officer, Sébastien Martel, and other members of the management committee must notably update the five-year plan and answer various questions.
Additional information surrounding the launch of new products, such as the electric motorcycle, is also expected. The presentations are broadcast live as part of a webcast accessible to all from 8 a.m.
BRP stock closed at $81.19 on Tuesday in Toronto. The stock had fallen as low as $73 in March after hitting a high of $129 last September.