(Reuters) – Renault announced on Wednesday that the impact of the first sale of part of its Nissan shares on its net profit will be less severe than expected, the loss on sale having been reduced by around 0.5 billion euros to 1 billion euros.
The reduction in this capital loss results from the accretive effect on the capital holding of Nissan’s decision to cancel all of the acquired shares, explained the diamond group in a press release published following the execution of the transactions announced the day before.
The final figure will be adjusted by the share of results for the last quarter of 2023 and published next February, he added.
As part of the capital rebalancing agreements of the Renault Nissan alliance, Renault has placed 28.4% of its stake in its Japanese partner in a trust, which it intends to monetize in order to help it regain its reputation in the eyes of rating agencies. investment category credit.
After the sale of the first 5%, which brings Renault a cash flow of 764 million euros, and under the accretive effect of the cancellation of Nissan shares, Renault still retains 24.63% of its Japanese partner.
“This transaction has no impact on the operating margin, nor on the group’s cash generation,” Renault reiterated in its press release.
The capital loss will also be excluded from the net income, group share, for the calculation of the dividend.
The French car manufacturer has also confirmed that it is targeting record operating margin and free cash flow in 2023. Renault’s results will be published on February 15.
(Written by Augustin Turpin and Gilles Guillaume, edited by Kate Entringer)
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