MONTRÉAL, Nov. 1, 2018 /CNW Telbec/ - In its last budget, the Québec government authorized CRCD to exchange an annual amount of $100 million, allowing shareholders to defer for seven years the right to redeem their eligible shares, that is, shares held for at least seven years, in consideration for a new 10% tax credit. The measure, which is effective for 2018, 2019 and 2020 only, affects approximately 52,000 CRCD shareholders who have never redeemed shares.
Starting November 5, 2018, shareholders interested in this option may make a request to exchange their current eligible shares, up to a value of $15,000 annually, for a new class of shares which they will also be required to hold for at least seven years. The authorized provincial tax credit amounts to 10% of the value of the shares exchanged, or a potential credit of $1,500 for 2018.
CRCD recently obtained confirmation from both levels of government that the exchange of shares would have no tax consequences for shareholders at the time of the transaction, other than securing the tax credit. Disposition of the shares for tax purposes will be deemed to occur only at the time of a future redemption of the shares obtained through the exchange.
Shareholders concerned will shortly receive a personalized communication by mail to complete their request online (www.desjardins.com/crcd-exchange) or by mail. If total demand for the exchange, which has an estimated potential of $544 million, exceeds the authorized amount of $100 million, CRCD will proceed with a random selection involving all shareholders who have completed a request by January 31, 2019. If demand does not exceed supply, all shareholders will be accepted for exchanges.
The CRCD shares are not guaranteed, their value fluctuates and their past performance is not indicative of their future returns. Investment fees may apply. Please read the prospectus before deciding whether to invest or to exchange your shares.
About Capital régional et coopératif Desjardins
With more than 103,000 shareholders, Capital régional et coopératif Desjardins (CRCD) is a public company with $1,977 million in net assets. CRCD contributes to Québec economic development through several levers developed with its manager, Desjardins Capital. These levers, with CRCD as the driving force, form its entrepreneurial ecosystem designed to value and nurture the best of Québec entrepreneurship. Directly or indirectly through its ecosystem, CRCD supports the growth of over 460 businesses, cooperatives and funds in various industries spanning all Québec regions, helping to create and retain more than 67,000 jobs. (www.capitalregional.com)
SOURCE Capital régional et coopératif Desjardins
For further information: For journalists only, Richard Lacasse, Capital régional et coopératif Desjardins, 418 835-8444 or 1 866 835-8444, ext. 556 3163, [email protected]; For investors, Shareholder Services, 1 888 522-3222