The Caisse is buying massive amounts of BRP

Caisse de depot et placement du Québec, already one of BRP’s largest shareholders, has increased its stake in recreational vehicle maker Valcourt by tens of millions of dollars over three weeks.

Posted at 6:00 am

Richard Dufour

Richard Dufour
The press

The Caisse notably bought large blocks of BRP stock on June 3 and during the following session when the stock fell sharply following the release of the company’s performance earlier in the fiscal year.

In addition to these purchases this month, the Caisse bought large blocks of BRP shares during the May 24th and 25th sessions. Quebec’s largest institutional investor bought $50 million worth of BRP stock between May 24 and June 6.

These trades, made due to the stock’s weakness, are recorded as a particularly acute episode of volatility hits the entire stock market.

Prior to these recent purchases in the market this spring, the Caisse already held 4.8 million multiple voting shares in BRP. Caisse’s total stake in BRP shares is now almost 13%, making it one of the largest shareholders alongside Bain Capital, Fidelity, Mackenzie and the Beaudoin Group (Beaudoin/Bombardier family).

The purchase of BRP shares is 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.

As is proper, in the case of significant stock market investments, the Caisse states that as a BRP shareholder it may have discussions with other shareholders or with BRP’s management and board of directors about the company’s business, operations or future plans.

The Caisse’s decision to increase its investment in BRP comes as management prepares to set its financial targets. BRP’s top executives are in Orlando on Wednesday to speak with investors and try to increase visibility to reassure shareholders and analysts.

In particular, the CEO, José Boisjoli, the Chief Financial Officer, Sébastien Martel, and other members of the Management Committee have to update the five-year plan and answer various questions.

Further information about the market launch of new products, such as the electric motorcycle, is also expected. The presentations will be broadcast live as part of a webcast open to all from 8 a.m.

BRP shares closed at $81.19 in Toronto on Tuesday. The stock had fallen as low as $73 in March after peaking at $129 last September.

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