Bombardier says it will net only $3.6B from rail sale to Alstom
Proceeds of sale downgraded because of market conditions
Bombardier says the net proceeds from the sale of its rail business to Alstom were lower than expected because of difficult market conditions.
The Montreal-based company confirmed the closing of the deal today.
Bombardier says net proceeds from the sale were $3.6 billion, down from the US$4 billion it had expected in September.
Bombardier spokeswoman Jessica McDonald attributed the drop to Bombardier Transportation's reduced cash generation in the fourth quarter in 2020.
McDonald says the shortfall was offset by the redemption of Bombardier equity and loan repayment from Bombardier Transportation.
Bombardier plans to share more details about the transaction when it reports its fourth-quarter results on Feb. 11.