PARIS (Reuters) – Renault announced on Tuesday a plan to sell a 5% tranche of its 28.4% stake held in its partner Nissan and placed in a trust, an operation which will have an impact of up to 1, 5 billion euros on the French car manufacturer’s net profit this year.
As part of a restructuring of its alliance with the Japanese group, Renault, which held 43.4% of Nissan, reduced its stake to 15%. He placed 28.4% of the Japanese group’s shares in a French trust in order to sell this stake as part of a process coordinated with Nissan.
The sale of shares, the first decided as part of the restructuring of the alliance, concerns 211 million Nissan shares based on a price of 568.5 yen.
This represents a sale value of up to 765 million euros, which will improve the net liquidity position of Renault’s automotive branch, the group said in a press release.
However, Renault warns of a capital loss on disposal of up to 1.5 billion euros which will impact its net profit this year.
“This amount is a maximum which could be adjusted at the end of the year to reflect Nissan’s capital allocation strategy,” specifies the group.
The operation will have no impact on operating income, adds Renault.
On the Paris Stock Exchange, Renault shares were volatile in early trading. It increased by 0.06% to 38.025 euros at 9:20 a.m., when the CAC 40 gained 0.21% at the same time.
In a separate statement, Nissan said it would buy back the 5% sold by Renault for 120 billion yen to cancel these shares later.
(Written by Blandine Hénault, edited by Kate Entringer)
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