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

Nissan revealed that the new 2017 Rogue Sport crossover will be priced in the U.S. market at $21,420. Specifically, this is for the front-wheel drive version of the Rogue Sport...
by - April 26, 2017
Remember the E30 BMW M3? Yes, the one from 1990. If you remember it right, it was also the company’s most iconic car and probably one of the best BMW...
by - April 26, 2017
Ferrari is cooking up something interesting for us. The last time they released the 488 GTB was two years ago, followed by a 488 Spider and several versions of it....
by - April 26, 2017
After launching the latest version of the BMW M550i xDrive, the German carmaker is now introducing its diesel counterpart -- the new M550d xDrive (G30/G31). Available either as a sedan...
by - April 26, 2017
A lot of news has been going around about the 2018 Dodge Challenger SRT Demon lately, and people are arguing whether the 840 horsepower vehicle by Fiat Chrysler should be...
by - April 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