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  5. CSU: Follow up question to the question asked today about equal weighting in the 3 noted companies. [Constellation Software Inc.]
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Investment Q&A

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Q: Follow up question to the question asked today about equal weighting in the 3 noted companies.
What %age of the shares outstanding for TOI and LMN does CSU own?
Are these two companies now out on their own wrt CSU or is CSU looking out for or helping them along in any way?
If so would they not sell any shares to raise capital and hence look elsewhere if needed?

Thanks
Jeff
Asked by JEFF on June 12, 2023
5i Research Answer:

After all the preferred shares are converted into common shares:

CSU owns 154,519,381 shares of LMN out of the fully-diluted shares outstanding of 253,104,971, equivalent to 61.05% of the total shares outstanding of LMN.
CSU also owns 39,412,385 shares of TOI out of the fully-diluted shares outstanding of 129,841,818, equivalent to 30.35% of the total shares outstanding of TOI

All three companies are separate entities. According to the prospectus, TOI and CSU, LMN and CSU will expect to cooperate on doing acquisitions, with each owning a portion of the acquired targets. CSU historically maintained the share count extremely well since going public, they do not tend to raise capital to do acquisitions, and we expect the same would apply to both TOI and LMN going forward. That being said, if CSU really required capital we would expect it to sell shares of LMN and TOI before it sold its own CSU share equity.