LONGUEUIL, Quebec — The Jean Coutu Group has sold its remaining shares of Rite Aid Corp., divesting its equity stake in the U.S. drug chain.
Jean Coutu Group said that on Thursday it completed the sale of 65,401,162 shares of Rite Aid common stock for $192.2 million (U.S.), which will result in a $94.1 million gain to be recorded in the company’s net profit for the fiscal 2014 second quarter.
"Following the sale of these shares, the corporation is no longer a shareholder of Rite Aid," Jean Coutu Group stated.
The Quebec-based drug chain had been gradually reducing its interest in Rite Aid, divesting two chunks of shares earlier this year.
Late last month, Jean Coutu sold 40.5 million Rite Aid shares for total proceeds of $110.8 million, lowering its share of Rite Aid’s outstanding common stock to 7.2%. And in mid-April, Coutu sold 72.5 million Rite Aid shares, or 40% of its interest in the drug chain, which reduced its stake in Rite Aid to 11.7%. After that transaction, Jean Coutu Group director Michel Coutu resigned from Rite Aid’s board after over five years of service.
In addition, Jean Coutu had divested 24% of its Rite Aid shares in April 2012 and 10% of its Rite Aid common stock in July 2011.
Jean Coutu acquired a 32% common equity stake in Rite Aid through a $3.4 billion deal announced in August 2006, in which it sold Rite Aid its U.S. retail pharmacy subsidiary, including more than 1,850 Brooks and Eckerd drug stores.
Under the agreement, Jean Coutu received received $2.36 billion in cash, subject to a working capital adjustment, and 250 million shares of Rite Aid common stock, which gave it 30.2% of the voting power in Rite Aid. The deal closed in June 2007.
Jean Coutu Group’s retail network currently includes 407 franchised stores in Quebec, New Brunswick and Ontario under the banners PJC Jean Coutu, PJC Clinique, PJC Santé and PJC Santé Beauté.
