Posted by & filed under Accounting Careers, Executive Compensation, Financial Accounting.

Description: Alimentation Couche-Tard Inc., a large chain of convenience stores centered in Qu├ębec, has repurchased a large block of shares from one of its founders. The deal will pay Alain Bouchard approximately $300 million for over 6 million shares. A company director who chaired the special board committee that approved the deal said that the repurchase “will create value for all shareholders.”

Date:  October 8, 2021

Source:  thestar.com

 Link: https://www.thestar.com/business/2021/10/08/alimentation-couche-tard-buys-63-million-shares-from-co-founder-for-300-million.html

Discussion points:

1) Is there a Couche-Tard near your university campus? Is it a popular spot for students?

2) Notice the board member’s statement that this transaction”will create value for shareholders?” What do you think that statement means?

3) Page 11-8, Exhibit 11.3, of Wiley’s Understanding Financial Accounting shows two different scenarios for recording the repurchase of shares: one when the shares are bought back at less than the original issue price and another for the opposite situation. Do a little research with your classmates to see which scenario might prevail in the Couche-Tard transaction.

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