Alstom (OTCPK:ALSMY) (OTCPK:AOMFF) recently announced the signing of a definitive purchase agreement for Bombardier Transport (BT) at an updated €7.15 billion enterprise value – a €300 million reduction from the previous announcement. The expected closing has been moved forward to Q1 ’21 (relative to H1 ’21 previously). While the lower valuation is a slight positive, I believe that the revised terms remain unfavorable to Alstom, considering the risks associated with BT’s project execution and the challenging path toward margin recovery at BT. Pending evidence of free cash flow improvement and the resolution of project issues at BT, I remain on the sidelines.

A Closer Look at the Updated Terms

To recap, a definitive purchase agreement has now been officially signed between Bombardier (OTCQX:BDRBF), Alstom, and Caisse de depot (CDPQ) that will see Alstom purchase BT (currently owned by CDPQ) for a lowered $8.4 billion enterprise value (€7.15 billion). Excluding further downward adjustments linked to the net cash protection mechanism, the implied price range for the acquisition is in the €5.5 billion to €5.9 billion range (down from the prior €5.8 billion to €6.2 billion).

Source: BT Acquisition Presentation Slides

While the moderate price cut is positive, it was already widely anticipated by the market after BT reported c. €380 million in unexpected project charges for its FQ2 results. And considering Alstom has explicitly stated it will take FQ2 results of BT into account when negotiating a final, definitive merger agreement, the extent of the reduction (€300 million EV vs. the €380 million charge) was perhaps even a little disappointing. Encouragingly, the closing window was narrowed to Q1 ’21, although the financing structure remains the same as communicated previously, including the €2 billion rights issue and the planned reserved capital increases of CDPQ and Bombardier at €2.6 billion and €0.5bn,

DENVER (AP) — As part of its corporate farewell to Denver, Molson Coors Beverage Co. vowed last fall to invest hundreds of millions of dollars in the company’s brewing plant in Golden, the second-largest beer-making facility in the world. Now the scope of that work is coming into focus, and heavy machinery is on the horizon in Jefferson County.

“Demolition activities will be starting relatively quickly,” Peter J. Coors, son of Molson Coors vice chairman and longtime face of Coors Brewing Pete Coors, told The Denver Post on Tuesday.

The younger Coors has been named the director of the G150 project, a name taken from the impending 150-year anniversary of family patriarch Adolph Coors launching a brewing company in Golden with fellow Prussian immigrant Jacob Schueler in 1873.

G150, scheduled to stretch into 2024, will completely overhaul the infrastructure between the company’s Golden brewhouse and the packaging facility at the massive plant. New, more-efficient fermenting, aging and filtration facilities will be built. The so-called “government cellars” where beer is stored prior to packaging will also be replaced with a state-of-the-art upgrade, Coors said. That building dates back to the 1950s.

“Obviously, we have made capital improvements of the course of the last 50, 60 years but all of those buildings were of that vintage,” he said. “It means a lot that Molson Coors is putting the money into the Golden brewery to set us up going forward.”


The existing fermenting, filtering and storage facilities aren’t being removed as part of the work, Coors said. Instead, they will be abandoned in place. The new tank farms coming as part of the project will be replacing surface parking lots and ponds on the property.

The big-time public commitment to Coors Brewing’s birthplace, production epicenter and symbolic home was made as the parent