NGUEUIL, QUEBEC--(Marketwired - Apr 16, 2013) - In accordance with the provisions of Rule 144 under the Securities Act of 1933, The Jean Coutu Group (TSX:PJC.A) filed on April 15, 2013 a notice confirming its intent to dispose up to 72,500,000 of its 178,401,162 common shares of Rite Aid Corporation (" Rite Aid "). The Jean Coutu Group completed the sale of these 72,500,000 common shares today. These shares were sold at an average price of US$2.20 per share for a net proceed of US$158.5 million. A gain of US$49.7 million will be recorded in the Corporation's net profit during the first quarter of the 2014 fiscal year.
The sale of these shares brings the Corporation's interest in Rite Aid's outstanding common shares down to 11.7%.
70MM shares sold in one large block - yet shares closed up nearly 1%. Good sign. It is doubtful if Jean Coutu's sale is seen as a lack of faith in future direction. The group has held on to RAD shares for nearly 7 years and cashing out a portion to fund other needs (should still be holding 100MM+ shares).
Sentiment: Strong Buy