France to reduce stake in Valeo via private placement

Article by Christian A., on March 18, 2014

The French government will cut its holdings in Valeo as part of its bid to boost the country's struggling auto industry. According to Bpifrance Participations, it had commenced process of selling around 2 million shares -- equivalent to 2.5 percent of the Valeo capital -- through a private placement.

Bank of America, Merrill Lynch and Credit Agricole CIB are lead managers of the placement. Once the transaction materializes, Bpifrance would only have a 3.3-percent stake in Valeo. "I am grateful to Bpifrance Participations for having taken a stake in our capital at a key moment in Valeo's history, in the midst of the crisis in 2009," Valeo chief executive Jacques Aschenbroich said in a statement.

Using Valeo's market value of EUR8.04 billion ($11.15 billion) at the market close on March 11, 2014, the stake divestment would result to around EUR201 million ($278.72 million) in proceeds. Valeo’s shares have surged more than nine-fold since the end of 2008, as strong auto demand in North American helped the supplier ride offset a six-year slump in Europe.

Bpifrance said the decision was made as Valeo now enjoys a position as a strong player in the global auto industry and had a "strong and stable shareholder base." Despite the sale, Bpifrance's participation in Valeo's board of directors will remain unchanged since the investment fund will still hold over 5 percent of Valeo voting rights, Bpifrance said.

Topics: france, valeo

If you liked the article, share on:

Comments

Recommended

Without a doubt, the SUV segment is getting increasingly more saturated. This month alone, we were greeted with city-oriented SUVs from the Kia Stonic to the Hyundai Kona, and now...
by - June 27, 2017
The Swedish moose test is known to have victimized many in the past, including the Toyota Hilux that massively failed. So knowing that many cars from trusted and leading automakers...
by - June 27, 2017
All-new BMW X3 (G01) just made its debut! The updated model has a familiar design, and slightly increased dimensions compared to its successful predecessors. For more cabin space, the wheelbase...
by - June 27, 2017
Polestar is notably known to be Volvo's internal performance specialists, and around last year Polestar revealed to the public that it will utilize electrification to further advance the power of...
by - June 26, 2017
Earlier this month, Porsche introduced to us the 911 Turbo S Exclusive Series. The car wore a Golden Yellow Metallic paint. The same time it was launched, the company said...
by - June 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries