Canada's Bombardier said on Monday it had agreed to sell its rail division to France's Alstom for an enterprise value of $8.2 billion, as it focuses more attention on its aviation business and pays down debt.

That price tag includes equity plus debt. The deal will be done mostly in cash, with a chunk paid in new Alstom shares, Bombardier and Alstom confirmed in separate statements.

Bombardier said it would be receiving net proceeds of between $4.2 and $4.5 billion, once it accounts for the portion that will go to Canadian pension fund manager Caisse de dépôt et placement du Québec, a 30% shareholder in the rail unit.

Caisse will become the biggest shareholder in Alstom following the deal, which is expected to close in the first half of 2021, Bombardier added.

The memorandum of understanding between Bombardier and Alstom was approved by both companies' boards.