WSP’s second-largest shareholder has just sold $100 million worth of shares in the Montreal-based engineering services firm.
The Canada Pension Plan Investment Board has now sold $700 million of WSP stock over the past two years.
The Canada Pension Plan Investment Board sold a total of 564,650 shares during two trading sessions last week, a document filed with authorities shows.
A block of 2.8 million shares was sold in July 2021 while a block of 1.2 million shares was sold in January last year.
However, this institutional investor took part last August in a financing operation to buy several tens of millions of dollars worth of WSP shares in order to support a project to acquire a company in Europe which did not ultimately not materialized.
The Canada Pension Plan Investment Board bought its first shares of WSP 11 years ago, when the company was known as Genivar. This asset manager still owns 17.7 million shares of WSP, the equivalent of a 14% stake with a market value of $3 billion.
WSP is one of the Quebec companies that has seen the best stock market growth in recent years.
WSP stock was worth around $30 in 2011. Today it is worth nearly $180.
“From time to time, we make adjustments to our investment portfolio to diversify our holdings in line with our broader investment strategy,” comments Frank Switzer, Head of Public Affairs and Communications at the Plan’s Investment Office. pensions from Canada.
Prior to the sale of WSP shares two years ago, the Canada Pension Plan Investment Board was the company’s largest shareholder. Since that time, the Caisse de depot et placement du Québec has been the largest shareholder, with an 18% stake.
The Caisse and the CPP Investment Board are the only two shareholders with stakes greater than 10% in WSP.
In particular, the CPP Investment Board has accumulated shares of WSP in securities issues carried out to help the company finance its numerous acquisitions.
Acquisitions have contributed to WSP’s strong growth over the years and are central to the company’s business model.
Eleven of the 13 analysts who officially follow WSP recommend buying the stock.
At the beginning of January, the Canada Pension Plan fund totaled $536 billion. The Canada Pension Plan Investment Board manages the fund for the benefit of 21 million depositors and beneficiaries of the Canada Pension Plan.
