Canada Development Investment Corporation: Sale of Air Canada Shares: Highlight

Sale of Air Canada Shares: Highlight

CDEV is proud to have achieved an excellent outcome for Canadians through the successful sale of Air Canada shares last week, which resulted in recouping the entire investment and generating a profit on the sale. As announced in the 2024 Fall Economic Statement on December 16, 2024, CDEV's subsidiary, Canada Enterprise Emergency Funding Corporation (CEEFC), exited the Air Canada share position in its entirety last week, realizing net proceeds of $544 million.

This successful monetization was the result of detailed planning and deep capital markets experience and underscores how our commercial expertise supports positive outcomes for the benefits of the Government of Canada and Canadians as a whole.

CEEFC owned 21,570,942 Class B Voting Shares of Air Canada, acquired in 2021 as part of the financing package to support Air Canada and protect jobs and air services during the COVID-19 pandemic. CEEFC did not intend to be a long-term owner of the shares.

Highlights of the transaction:

· Original purchase price of $23.18 per share

· Average sale price of $25.22 per share

· Total proceeds from sale of $544 million

· Net profit of $43.8 million

· Combined with the sale of Air Canada warrants in 2022 for $82.2 million, the total profit for Canadians is $126 million

For more information about CEEFC's financial assistance to Air Canada: https://www.ceefc-cfuec.ca/dec-17-announcement/

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