The Jean Coutu Group Sells Rite Aid Shares
APR 20, 2012 - 17:03 ET
FOR: THE JEAN COUTU GROUP (PJC) INC.
LONGUEUIL, QUÉBEC--(Marketwire - April 20, 2012) - In accordance with the provisions of Rule 144 under the Securities Act of 1933, The Jean Coutu Group (TSX:PJC.A) filed on April 17, 2012 a notice confirming its intent to dispose up to 56,000,000 of its 234,401,162 common shares of Rite Aid Corporation (" Rite Aid "). The Jean Coutu Group completed the sale of these 56,000,000 common shares today. These shares were sold at an average price of US$1.51 per share for a total proceed of US$83.6 million, net of related costs. Consequently, a gain of US$83.6 million will be recorded in the Corporation's net profit during the first quarter of the 2013 fiscal year since the carrying value of the investment in Rite Aid was previously written-off.
The sale of these shares brings the Corporation's interest in Rite Aid's outstanding common shares down to 19.85%. According to the International Financial Reporting Standards, the investment in Rite Aid will now be accounted for at fair value. This change will result in a non-cash gain in the Corporation's net profit equivalent to the fair value as at April 20, 2012 of the 178,401,162 common shares that the Corporation still owns. Subsequent changes in the fair value of the investment in Rite Aid will be accounted for in the Corporation's comprehensive income.
Following these transactions, the number of the Corporation's representatives on Rite Aid's Board of Directors will decrease from 3 to 2 members, as stipulated in the stockholder agreement between The Jean Coutu Group and Rite Aid.
About The Jean Coutu Group
The Jean Coutu Group is one of the most trusted names in Canadian pharmacy retailing. The Corporation operates a network of 399 franchised stores located in the provinces of Québec, New Brunswick and Ontario under the banners of PJC Jean Coutu, PJC Clinique, PJC Jean Coutu Santé and PJC Jean Coutu Santé Beauté, and employs close to 19,000 people. Furthermore, since December 2007, the Jean Coutu Group owns Pro Doc Ltd ("Pro Doc"), a Québec-based subsidiary and manufacturer of generic drugs. The Corporation also holds a significant interest in Rite Aid Corporation ("Rite Aid") a national chain of drugstores in the United States with approximately 4,700 stores in 31 states and the District of Columbia.
Source: The Jean Coutu Group (PJC) Inc.