The Quebec government on Tuesday offered a conditional loan of 200 million US dollars (193 million francs) to Cirque du Soleil, a company which is experiencing serious difficulties due to the pandemic.
“I am announcing today that the Council of Ministers has granted financial assistance of up to US $ 200 million for the revival of the circus,” said Quebec Minister of Economy Pierre Fitzgibbon. “An agreement in principle” between the province and the current shareholders of Cirque – the American funds TPG Capital and Chinese Fosun, as well as the Caisse de depot et placement du Quebec – has been concluded, he said.
Under this agreement, Cirque du Soleil’s head office must remain in Montreal and the province could buy the current holdings of Chinese and American funds.
Technical unemployment
The pandemic hit Cirque du Soleil hard, forcing it to cancel 44 performances worldwide and lay off 4679 employees, or 95% of its staff, for technical unemployment.
Cirque du Soleil founder and former boss Guy Laliberté announced Sunday his intention to try to buy the famous Quebec company, which he co-founded in 1984. The former juggler who became a millionaire shared his project, live, during the popular Radio-Canada “Tout le monde en parle” program. “We have a good plan. We think we are capable of bringing back the sacred fire, ”he said. “This revival will have to be done again at a fair price. And not at all costs, “he warned on Monday, the circus being handicapped by a heavy debt estimated at 900 million US dollars (869 million francs).
Guy Laliberté, who sold most of his shares in 2015, did not give details of his possible offer and his partners, saying he was only surrounded by a “super team”.
In that year, TPG Capital acquired a 60% stake in Cirque du Soleil, alongside the Chinese fund Fosun Capital Group (20%) and the Caisse de depot et placement du Quebec (10%). The latter bought in 2019 the 10% still held by Guy Laliberté. Several groups, including Quebecois Quebecor, have expressed their interest in a possible takeover of the circus. (dpa / nxp)
Created: 27.05.2020, 01h20
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