Renault Group sold 211,000,000 Nissan shares for €764 million
December 13 2023 - 1:26AM
Renault Group sold 211,000,000 Nissan shares for €764 million
Press ReleaseDecember 13, 2023 |
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Renault Group sold 211,000,000
Nissan shares for €764
million
Boulogne-Billancourt, December 13th, 2023 –
Following the New Alliance Agreement signed on November 8, 2023
with Nissan, Renault Group has started to monetize the 28.4% of
Nissan shares that were transferred by Renault Group into a French
trust.
Renault Group announces that it sold 211,000,000
Nissan shares to Nissan, representing 5% of Nissan capital.
This disposal fits in with Renault Group's
capital allocation strategy, which consists of 2 phases:
- Phase #1:
implementing the strategic projects of the “Revolution” phase of
the Group (including Ampere and Horse), while improving operating
performance and free cash flow generation and reducing debt.
- The priority is to return to an
investment grade credit rating;
- Until this investment grade rating
objective is reached, the Group will apply its dividend policy,
with a gradual increase of its pay-out ratio up to 35% of net
income - Group share. It will also continue to implement employee
shareholding plans, with the aim to reach 10% of employee
shareholders by 2030;
- As announced at its Capital Market
Day in November 2022, Renault Group plans to reinvest at least 50%
of the excess cash generated by the Group. Renault Group will
dedicate a maximum of 15 to 20% of its free cash flow to financial
investments (subject to be aligned with the Group's ROCE
targets).
- Phase #2: further development of
Renault Group around its various value chains and return to
shareholders.
More specifically, the €764 million cash inflow
from this operation will cover financial investments made by
Renault Group in 2023 as well as those planned for 2024. This will
allow faster deleveraging and supports the Group’s determination to
return to an investment grade rating.
This sale was implemented as part of the share
buyback program announced by Nissan on December 12, 2023, and
executed on December 13, 2023. Nissan has also announced his
decision to cancel all the acquired shares on December 15,
2023.
On the transaction date, this sale of Nissan
shares by Renault Group, at a Nissan share price of ¥568.5 resulted
in:
- On the Group’s consolidated
financial statements as of December 31, 2023:
- A disposal value of €764 million,
which improves the net financial position of Renault Group
Automotive segment.
- This transaction has no impact on
the Group's operating margin and cash generation. The Group fully
confirms its financial outlook for 2023, with record operating
margin and free cash flow.
- Nissan has decided to cancel all
the acquired shares, implying an accretive effect on the capital
position. The capital loss on disposal, initially expected to be up
to €1.5 billion, will therefore be reduced to around €1 billion
(final figure will be adjusted by the share in earnings from the
last quarter of 2023 and published during FY 2023 Results
release). This capital loss impacts the net income in Renault
Group’s consolidated financial statements but will be excluded from
the net income parent share calculation base for the dividend
payout.
- Transaction has no material tax
impact.
- On Renault S.A. annual financial
statements as of December 31, 2023:
- A disposal gain of around €100
million on the shares.
Following the cancellation of the acquired
shares as part of the buyback and decided by Nissan, scheduled for
December 15, 2023, Renault Group's direct holding position will
rise automatically to 15.79% of Nissan's capital. 24.63% of Nissan
shares will be held in the French trust of which Renault Group is
the beneficiary. In accordance with the New Alliance Agreement,
Renault Group has no obligation to dispose of the 0.79% in excess
of the 15%, and Nissan will continue to hold a 15% stake in Renault
Group. However, the voting rights of Renault Group and Nissan will
continue to be capped at 15%.
About Renault Group
Renault Group is at the forefront of a mobility
that is reinventing itself. Strengthened by its alliance with
Nissan and Mitsubishi Motors, and its unique expertise in
electrification, Renault Group comprises 4 complementary brands -
Renault, Dacia, Alpine and Mobilize - offering sustainable and
innovative mobility solutions to its customers. Established in more
than 130 countries, the Group has sold 2.1 million vehicles in
2022. It employs nearly 106,000 people who embody its Purpose every
day, so that mobility brings people closer. Ready to pursue
challenges both on the road and in competition, Renault Group is
committed to an ambitious transformation that will generate value.
This is centred on the development of new technologies and
services, and a new range of even more competitive, balanced, and
electrified vehicles. In line with environmental challenges, the
Group’s ambition is to achieve carbon neutrality in Europe by 2040.
More information: https://www.renaultgroup.com/en/
RENAULT
GROUP INVESTORRELATIONS |
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Philippine de
Schonen+33 6 13 45 68
39philippine.de-schonen@renault.com |
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RENAULT
GROUP PRESS RELATIONS
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Rie Yamane+33 6 03
16 35 20rie.yamane@renault.com |
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- 20231213_Press release Nissan Shares Sale - final
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