mrxbombastic
Active Member
Exclusive CTV report tonight. Can't find video link yet but will be up soon I presume. LCBO was given purchase offer.
Excuse me if this isn't best thread for this topic but didn't think it warranted a new one.
According to CTV reporter Paul Bliss on tonight 6pm newscast:
Onex Group and Ontario Public Sector Employee Union (OPSEU) offered to purchase 75% of the LCBO for $11 billion in cash.
Under the deal, the joint purchase by ONEX and OPSEU would have been backed by 4 major banks (presumably the big Canadian ones) financing $9 Billion and two private investment firms financing $2 Billion.
The province would retain 25% equity in the LCBO and would receive minimum $500 million dollars in royalties per year. So these are the profit returns not the tax income. For comparison's sake LCBO has brought in about $1.75 Billion annually in profits to provincial coffers.
Under the deal the province would retain the right to control sales and marketing of liquor, alleviating some concerns of a free for all uncontrolled access to liquor with respect to minors and such.
Warren (Smokey) Thomas, the OPSEU union leader, stated that their motive was: if the government was going to sell the LCBO then it should remain in the hands of Canadians. Smokey acknowledges that yes the offer made was real.
A letter from premier Wynne's office in response to the offer stated that the refused to accept this "Sole Source" deal. I and the reporter as well highlight "sole source" because it begs the question of whether they are open to a competitive bid for the LCBo and on what terms.
It seems including the sole course description of the deal would be pointless and superfluous if they reject outright sale of any kind.
Excuse me if this isn't best thread for this topic but didn't think it warranted a new one.
According to CTV reporter Paul Bliss on tonight 6pm newscast:
Onex Group and Ontario Public Sector Employee Union (OPSEU) offered to purchase 75% of the LCBO for $11 billion in cash.
Under the deal, the joint purchase by ONEX and OPSEU would have been backed by 4 major banks (presumably the big Canadian ones) financing $9 Billion and two private investment firms financing $2 Billion.
The province would retain 25% equity in the LCBO and would receive minimum $500 million dollars in royalties per year. So these are the profit returns not the tax income. For comparison's sake LCBO has brought in about $1.75 Billion annually in profits to provincial coffers.
Under the deal the province would retain the right to control sales and marketing of liquor, alleviating some concerns of a free for all uncontrolled access to liquor with respect to minors and such.
Warren (Smokey) Thomas, the OPSEU union leader, stated that their motive was: if the government was going to sell the LCBO then it should remain in the hands of Canadians. Smokey acknowledges that yes the offer made was real.
A letter from premier Wynne's office in response to the offer stated that the refused to accept this "Sole Source" deal. I and the reporter as well highlight "sole source" because it begs the question of whether they are open to a competitive bid for the LCBo and on what terms.
It seems including the sole course description of the deal would be pointless and superfluous if they reject outright sale of any kind.
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