Maple Leaf FoodsFred Lum/The Globe and Mail
This is one pricey divorce.
Ontario Teachers' Pension Plan is now fully out of Maple Leaf Foods Inc. , but at a cost that just keeps climbing.
In August, when it sold its first big block of stock to West Face Capital, Teachers got $8.25 a share when the market price was $9. On 13.7 million shares, that discount cost about $10-million.
Tuesday, as it sold another 21 million shares of Maple Leaf to a pair of investment banks, the pension plan manager had to accept a price of $10.50. The stock last traded before the sale was announced at $12.69. That's another $46-million in value lost.
Then, Teachers announced it increased the size of Tuesday's deal to 34.5 million shares, peeling out of the last of its total stake. That's another $29.6-million.
The grand total: just shy of $86-million.