Quebecor Inc. Sells Some Shares of Quebecor World, Maintains Control
Press release from the issuing company
MONTREAL- Nov. 21, 2002-- Quebecor Inc. announced today that it has entered into an agreement with TD Securities Inc. providing for the sale and distribution to the public in Canada of up to 8 million subordinate voting shares of Quebecor World Inc. held by Quebecor at a price of $38.25 per share. This secondary offering will allow Quebecor to improve its overall financial condition, while maintaining control of Quebecor World, the largest commercial printer in the world.
Quebecor Inc. will realize proceeds of $306 million in connection with this transaction which will be used to repay current bank indebtedness of Quebecor and Quebecor Media Inc., as well as for other general corporate purposes. Following completion of this offering, and assuming the exchange of 12,500,000 shares of Quebecor World pursuant to Quebecor's exchangeable debenture issued in February 2001, Quebecor will hold approximately 75.4% of the voting rights and 23.6% of the equity of Quebecor World.
Quebecor World will not receive any proceeds from this secondary offering. Subject to receiving regulatory approvals, the transaction is expected to close on December 9, 2002.
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