Renault will sell 2.5% of the capital of the Japanese group to Nissan for 362 million euros.

(Update: transaction details, Renault share price)

PARIS (Agefi-Dow Jones)–Car maker Renault announced on Wednesday that it intends to sell up to 100,242,900 Nissan shares, representing 2.5% of the capital, to its historic partner within the Renault-Nissan-Mitsubishi alliance.

These Nissan shares are part of the 24.63% of Nissan’s capital held by Renault in trust. The French group transferred 28.4% of Nissan’s capital to this model last November, while balancing the share ownership of the two car groups. Each now directly holds 15% of the other’s capital, with the obligation to preserve and deposit these shares. Until then, Renault held 43.4% of the capital of Nissan, which in turn owned 15% of the French group.

Based on Nissan’s closing share price on Wednesday, returned to dividends, of 593.4 yen, the sale of a large number of planned shares would result in a positive cash flow of up to 362 million euros for Renault on the date of operation, it showed. French group.

“This operation will accelerate debt reduction and support the group’s determination to regain ‘Investment Grade’ financial levels,” added Renault.

The operation, however, involves a capital loss on sales that will affect Renault’s net income for the 2024 financial year to about 450 million euros, the French industrialist said. This capital loss, recorded in “other operating income and expenses”, will not have an impact on the group’s operating income, Renault added.

The sale will be implemented as part of a share buyback plan announced by Nissan on Wednesday. The Japanese group also indicated its decision to cancel the shares it will officially acquire on Thursday, which will have a positive impact on its net profit per share.

On the Paris Stock Exchange, Renault shares rose by 1.1% after these announcements, to 47.33 euros.

– Dimitri Delmond, Agefi-Dow Jones; +33(0)141274731; ddelmond@agefi.from: VLV

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March 27, 2024 04:34 ET (08:34 GMT)