Marcopolo S.A.

September 22, 2016 16:19 ET

Marcopolo Sells a Portion of Its Shares of New Flyer and Confirms Ongoing Commercial Cooperation Initiatives

TORONTO, ONTARIO--(Marketwired - Sept. 22, 2016) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Marcopolo S.A. ("Marcopolo"), a leading Brazilian company in bus bodies production, announced that its wholly-owned subsidiary, Marcopolo Canada Holdings Corp., has today sold 4.5 million common shares of New Flyer Industries Inc. ("New Flyer"), representing approximately 7.4% of the issued and outstanding common shares of New Flyer, in a secondary sale on a "bought block trade" basis at a sale price of $40.40 per share, for aggregate gross proceeds to Marcopolo of approximately $182 million. The disposition of the shares was undertaken by Marcopolo to realize a cash return on a portion of its investment in New Flyer and the proceeds will be used in support of Marcopolo's general financing requirements. Following the completion of the transaction, Marcopolo remains the largest shareholder of New Flyer with an approximate 10.8% stake.

The underwriters for the sale are being led by CIBC Capital Markets.

Immediately prior to the disposition, Marcopolo owned 11,087,834 common shares of New Flyer. Immediately following the disposition, Marcopolo continues to own 6,587,834 common shares of New Flyer, representing approximately 10.8% of the issued and outstanding common shares.

Marcopolo currently intends to maintain its equity stake in New Flyer, which is an important part of its strategy. Marcopolo and New Flyer have confirmed their ongoing commercial cooperation initiatives under their 2013 Memorandum of Understanding, pursuant to which the two companies have been exploring opportunities to cooperate on engineering, technical, purchasing and operational matters and assessing Marcopolo's technology and products for possible introduction into the Canadian and US markets through New Flyer as well as New Flyer's technology and products for potential distribution into global markets. In addition, Mr. Paulo Cezar da Silva Nunes will continue as a member of the Board of Directors of New Flyer.

Francisco Gomes Neto, CEO of Marcopolo, said "Marcopolo's investment in New Flyer has been incredibly successful and we continue to be fully confident in the business and continued success of New Flyer. We will continue to look for opportunities to collaborate with New Flyer on a commercial level on projects that offer benefits for both companies."

Marcopolo holds the common shares of New Flyer for investment purposes and may increase or decrease its equity investment in New Flyer through market transactions, private agreements, treasury issuances, exercise of options, warrants or other convertible securities or otherwise at any time subject to applicable contractual restrictions and depending on market conditions and any other relevant factors from time to time.

The common shares of New Flyer being sold by Marcopolo have not been registered under the U.S. Securities Act of 1933, as amended. This news release is not an offer of securities for sale in the United States and the common shares of New Flyer may not be offered or sold in the United States except pursuant to an exemption from registration.

Marcopolo's head office is located at: Rio Branco Avenue, 4889 - Bairro Ana Rech, Caxias do Sul - RS - Brasil - CEP: 95060-145. New Flyer's head office is located at: 711 Kernaghan Avenue, Winnipeg, Manitoba R2C 3T4.

Contact Information

  • To obtain a copy of the early warning report filed in
    connection with this news release, please contact:
    Thiago A. Deiro
    +55 54 2101.4660