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LONGUEUIL, Quebec — The Jean Coutu Group has sold 56 million shares of Rite Aid Corp., reducing its interest in Rite Aid’s outstanding common shares to 19.85%.
The sale, at $1.51 per share, netted $83.6 million.
The gain will be recorded in Coutu’s net profit during the first quarter of fiscal 2013, since the carrying value of the investment in Rite Aid was previously written off.
The investment will now be accounted for at fair value. This change will result in a noncash gain in Coutu’s net profit equivalent to the fair value on April 20, of the 178.4 million common shares it still owns. Subsequent changes in the fair value will be accounted for in Coutu’s comprehensive income.
With the sale, Coutu has reduced its number of Rite Aid board members from three to two, as stipulated in the stockholder agreement between the two drug chains.
