Videotron president resigns, little variation on Quebecor stock exchange

Vidéotron President Manon Brouillette announced her resignation on October 16, 2018 by way of press release. As a result of this surprise announcement, the title of Quebecor (TSX: QBR.B.) did not fall as one would have expected and even rose slightly by 1.77% on the Toronto Stock Exchange.

 

Manon Brouillette will step down as President on December 31, 2018. She has held various positions during her 14-year career with Quebecor, including five years as President and CEO of Videotron. Ms. Brouillette maintains that her decision is motivated by personal reasons and wishes to seek a seat on the Board of Directors of Quebecor in January 2019. No successor has so far been announced at the head of the largest business unit from Quebecor. Investors were not chilled by this announcement, the action of Quebecor took 47 cents to close the day of October 16 at 26.5 CAN $.

 

Despite the departure of its president, Videotron should continue to generate growth in the cable and wireless sectors. Ms. Brouillette leaves behind a strong and experienced team. Furthermore, she does not leave to go to a competitor and should continue to assert her expertise on the Board of Directors of Quebecor. This conglomerate managed well the departures of its leaders in the past and nothing indicates that it will be different this time, despite the absence of a clear succession plan. In short, this change in Vidéotron’s senior management is not expected to have a major impact on Quebecor’s stock, which has already risen 11% since the beginning of 2018 on the Toronto Stock Exchange.

Bibliography

Les Affaires. (16 octobre 2018. Vidéotron: recommandation d’achat malgré la démission de sa présidente. [En ligne]. Disponible:

https://www.lesaffaires.com/bourse/analyses-de-titres/videotron-recommandation-d-achat-malgre-la-demission-de-sa-presidente/605704

Le Devoir. (17 octobre 2018). La dirigeante de Vidéotron démissionne. [En ligne]. Disponible:https://www.ledevoir.com/economie/539160/la-dirigeante-de-videotron-demissionne

Le Droit. (16 octobre 2018). La dirigeante de Vidéotron Manon Brouillette partira à la fin de l’année. [En ligne]. Disponible:

https://www.ledroit.com/actualites/le-fil-groupe-capitales-medias/la-dirigeante-de-videotron-manon-brouillette-partira-a-la-fin-de-lannee-4f643e506aaaa315f1b4bbb8ba5a44e7

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