Renault Group will sell up to 100,242,900 Nissan shares to Nissan, representing approximately 2.5% of Nissan’s capital.

After completing the first sale of Nissan shares on December 13, 2023, Renault Group announces the second operation with the intention of selling Nissan to the border 100 242 900 nissan actions, representing approx 2.5% the capital city of Nissan.

This sale of approximately 2.5% of Nissan’s capital is based on Nissan’s exercise of its right of first offer to acquire 100,242,900 Nissan shares following. of a notification from the Renault Group indicating its intention to sell 280 690 000 Nissan shares (representing approximately 7% of Nissan’s capital). Pursuant to the New Alliance Agreement, Renault Group has the option to sell the remaining 180,447,100 shares not repurchased by Nissan, within 180 days to Nissan or third parties.

The sale will be implemented as part of a share buyback plan announced by Nissan on March 27, 2024. Nissan expressed its decision to liquidate the acquired shares which will have a positive effect on its shareholders.

The shares to be sold are part of 24.63% of Nissan’s capital held by a French guarantee (as a reminder, 28.4% was previously transferred by Renault Group to this guarantee on November 8, 2023, in accordance with the New Merger Agreement between Renault Group and Nissan).

Assuming a Nissan share price of 593.4 yen (Nissan’s last March 27, 2024 share price returned to 10 yen corresponding to the next dividend payment that Renault Group should receive on these 100,242,900 shares sold in the first half of 2024) and sale of the maximum number of Nissan shares of 100,242,900, this sale of shares of Nissan and Renault Group would result in positive cash flow to 362 million d’euro date of operation, which would improve the financial reality of Renault Group’s Automotive division.

The accounting effects of this sale of 100,242,900 Nissan shares will be as follows:

• on the consolidated accounts of the Renault Group: capital loss from sales of up to 450 million euros that would affect the net profit (this capital loss, recognized in “Other operating income and expenses”, will not affect the Group’s operating profit);
• on Renault SA company accounts: capital gains of up to 50 million euros.

This operation will accelerate debt reduction and support the Group’s determination to restore its “investment grade” financial rating.