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UNITED
STATES |
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SECURITIES
AND EXCHANGE
COMMISSION |
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Washington, D.C. 20549 |
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SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. 17)*
STMicroelectronics
N.V.
(Name of Issuer)
Common Shares,
nominal value €1.04 per share
(Title of Class of Securities)
861012102
(CUSIP Number)
December 31,
2023
(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which
this Schedule is filed:
o |
Rule 13d-1(b) |
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o |
Rule 13d-1(c) |
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x |
Rule 13d-1(d) |
*The remainder of this cover page shall be filled out for a reporting
person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing
information which would alter the disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall
not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”)
or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however,
see the Notes).
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1 |
Name of Reporting Person
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
STMicroelectronics Holding N.V. |
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2 |
Check the Appropriate Box if a Member of a Group |
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(a) |
x |
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(b) |
o |
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3 |
SEC Use Only |
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4 |
Citizenship or Place of Organization
The Netherlands |
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Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With: |
5 |
Sole Voting Power
0 |
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6 |
Shared Voting Power
250,704,754 |
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7 |
Sole Dispositive Power
0 |
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8 |
Shared Dispositive Power
250,704,754 |
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9 |
Aggregate Amount Beneficially Owned
by Each Reporting Person
250,704,754 |
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10 |
Check Box if the Aggregate Amount in
Row (9) Excludes Certain Shares o |
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11 |
Percent of Class Represented by
Amount in Row 9
27.8% |
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12 |
Type of Reporting Person
HC |
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1 |
Name of Reporting Person
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Bpifrance Participations S.A. |
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2 |
Check the Appropriate Box if a Member of a Group |
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(a) |
x |
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(b) |
o |
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3 |
SEC Use Only |
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4 |
Citizenship or Place of Organization
France |
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Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With: |
5 |
Sole Voting Power
0 |
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6 |
Shared Voting Power
250,704,754 |
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7 |
Sole Dispositive Power
0 |
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8 |
Shared Dispositive Power
250,704,754 |
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9 |
Aggregate Amount Beneficially Owned
by Each Reporting Person
250,704,754 |
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10 |
Check Box if the Aggregate Amount in
Row (9) Excludes Certain Shares o |
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11 |
Percent of Class Represented by
Amount in Row 9
27.8% |
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12 |
Type of Reporting Person
CO |
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1 |
Name of Reporting Person
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Ministero dell’Economia e delle Finanze |
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2 |
Check the Appropriate Box if a Member of a Group |
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(a) |
x |
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(b) |
o |
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3 |
SEC Use Only |
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4 |
Citizenship or Place of Organization
Italy |
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Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With: |
5 |
Sole Voting Power
0 |
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6 |
Shared Voting Power
250,704,754 |
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7 |
Sole Dispositive Power
0 |
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8 |
Shared Dispositive Power
250,704,754 |
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9 |
Aggregate Amount Beneficially Owned
by Each Reporting Person
250,704,754 |
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10 |
Check Box if the Aggregate Amount in
Row (9) Excludes Certain Shares o |
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11 |
Percent of Class Represented by
Amount in Row 9 27.8% |
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12 |
Type of Reporting Person
CO |
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1 |
Name of Reporting Person
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Caisse des dépôts et consignations |
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2 |
Check the Appropriate Box if a Member of a Group |
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(a) |
x |
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(b) |
o |
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3 |
SEC Use Only |
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4 |
Citizenship or Place of Organization
France |
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Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With: |
5 |
Sole Voting Power
0 |
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6 |
Shared Voting Power
254,380,285 |
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7 |
Sole Dispositive Power
0 |
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8 |
Shared Dispositive Power
254,380,285 |
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9 |
Aggregate Amount Beneficially Owned
by Each Reporting Person
254,380,285 |
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10 |
Check Box if the Aggregate Amount in
Row (9) Excludes Certain Shares o |
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11 |
Percent of Class Represented by
Amount in Row 9 28.2% |
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12 |
Type of Reporting Person
CO |
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1 |
Name of Reporting Person
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
EPIC Bpifrance |
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2 |
Check the Appropriate Box if a Member of a Group |
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(a) |
x |
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(b) |
o |
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3 |
SEC Use Only |
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4 |
Citizenship or Place of Organization
France |
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Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With: |
5 |
Sole Voting Power
0 |
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6 |
Shared Voting Power
250,704,754 |
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7 |
Sole Dispositive Power
0 |
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8 |
Shared Dispositive Power
250,704,754 |
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9 |
Aggregate Amount Beneficially Owned
by Each Reporting Person
250,704,754 |
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10 |
Check Box if the Aggregate Amount in
Row (9) Excludes Certain Shares o |
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11 |
Percent of Class Represented by
Amount in Row 9 27.8% |
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12 |
Type of Reporting Person
CO |
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1 |
Name of Reporting Person
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Bpifrance S.A. |
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2 |
Check the Appropriate Box if a Member of a Group |
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(a) |
x |
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(b) |
o |
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3 |
SEC Use Only |
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4 |
Citizenship or Place of Organization
France |
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Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With: |
5 |
Sole Voting Power
0 |
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6 |
Shared Voting Power
250,704,754 |
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7 |
Sole Dispositive Power
0 |
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8 |
Shared Dispositive Power
250,704,754 |
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9 |
Aggregate Amount Beneficially Owned
by Each Reporting Person
250,704,754 |
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10 |
Check Box if the Aggregate Amount in
Row (9) Excludes Certain Shares o |
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11 |
Percent of Class Represented by
Amount in Row 9
27.8% |
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12 |
Type of Reporting Person
CO |
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Item 1 (a). |
Name of Issuer:
STMicroelectronics N.V. (the “Company”) |
Item 1 (b). |
Address
of Issuer’s Principal Executive Offices:
WTC Schiphol Airport
Schiphol Boulevard 265
1118 BH Schiphol Airport
The Netherlands |
Item 2 (a). |
Name
of Persons Filing:
(i) STMicroelectronics
Holding N.V. (“ST Holding”)
(ii) Bpifrance
Participations S.A. (“Bpifrance Participations”)
(iii) Ministero dell’Economia
e delle Finanze (“Ministry of the Economy and Finance”)
(iv) Caisse des dépôts
et consignations (“CDC”)
(v) EPIC
Bpifrance (“EPIC”)
(vi) Bpifrance S.A.
(“Bpifrance”) |
Item 2 (b). |
Address
of Principal Business Office, or if none, Residence:
(i) STMicroelectronics
Holding N.V.
De Lairessestraat 145E
Amsterdam
1075 HJ
The Netherlands
(ii) Bpifrance
Participations S.A.
27-31 avenue Général Leclerc
94710 Maisons-Alfort Cedex
France
(iii) Ministero
dell’Economia e delle Finanze
via XX Settembre, 97
00187 Rome
Italy
(iv) Caisse
des dépôts et consignations
56, rue de Lille
75007 Paris
France
(v) EPIC
Bpifrance
27-31 avenue Général Leclerc
94710 Maisons-Alfort Cedex
France
(vi) Bpifrance
S.A.
27-31 avenue Général Leclerc
94710 Maisons-Alfort Cedex
France |
Item 2 (c). |
Citizenship:
(i) The Netherlands
(ii) France
(iii) Italy
(iv) France
(v) France
(vi) France |
Item 2 (d). |
Title of Class of Securities:
Common Shares, nominal value €1.04 per Share |
Item 2 (e). |
CUSIP Number:
861012102 |
Item 3. |
If this statement is filed pursuant to §§240.13d-1(b) or 240.13d-2(b) or (c),
check whether the person filing is: |
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Not applicable. |
Item 4(a). |
Amount beneficially owned:
250,704,754 common shares held of record by ST Holding on the Company’s share registry.
ST Holding is jointly controlled by Bpifrance Participations and the
Ministry of the Economy and Finance (see Exhibit 1 attached hereto).
Bpifrance may be deemed to be the beneficial owner of 250,704,754
common shares indirectly through its 99.99% ownership of Bpifrance Participations. EPIC may be deemed to be the beneficial owner of 250,704,754
common shares indirectly through its joint ownership and control of Bpifrance.
CDC may be deemed to be the beneficial owner of 3,675,531 common shares
held indirectly through other subsidiaries and 250,704,754 common shares held indirectly through ST Holding. |
Item
4(b). |
Percent of class:
Ownership is stated as of December 31,
2023 and the ownership percentages are based on 902,771,081 shares outstanding as of December 31, 2023, as disclosed by STMicroelectronics
N.V. in its Form 6-K filed on January 25, 2024. |
Item
4(c). |
Number of shares as to which such person
has:
Please see Items 5, 6, 7, 8, 9 and 11
of each cover sheet for each filing entity. |
Item 5. |
Ownership
of Five Percent or Less of a Class: |
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Item 5 is not
applicable. |
Item 6. |
Ownership of More
than Five Percent on Behalf of Another Person: |
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Item 6 is not applicable. |
Item 7. |
Identification and Classification
of the Subsidiary Which Acquired the Security Being Reported on By the Parent Holding Company or Control Person: |
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Item 7 is not applicable. |
Item 8. |
Identification and Classification
of Members of a Group: |
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For the identity of each member
of the Group and a description of the relevant shareholders’ agreement, see Exhibit 1 attached hereto. See
also Item 4 above. |
Item 9. |
Notice of Dissolution of Group: |
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Item 9 is not applicable. |
Item 10. |
Certification: |
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Item 10 is not applicable. |
SIGNATURE
After reasonable inquiry and to the best of my
knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
Dated: February 14, 2024 |
STMicroelectronics Holding N.V. |
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By: |
/s/ Charlotte
Fadlallah |
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Name: |
Charlotte Fadlallah |
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Title: |
Managing Director |
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Bpifrance Participations S.A. |
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By: |
/s/ Sophie Paquin |
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Name: |
Sophie Paquin |
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Title: |
Director of Legal Affairs |
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Ministero dell’Economia e delle
Finanze |
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By: |
/s/ Marcello
Sala |
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Name: |
Marcello Sala |
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Title: |
Director general of the Department of the Economy |
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Caisse des
dépôts et consignations |
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By: |
/s/ Laurence
Giraudon |
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Name: |
Laurence Giraudon |
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Title: |
Chief Operating Officer, Finance and Operations Department,
Asset Management Division |
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EPIC Bpifrance |
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By: |
/s/ Sophie Paquin |
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Name: |
Sophie Paquin |
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Title: |
Director of Legal Affairs |
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Bpifrance S.A. |
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By: |
/s/ Boubakar
Dione |
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Name: |
Boubakar Dione |
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Title: |
Group Director of Legal Affairs |
Exhibit
99.1
EXHIBIT 1
Principal Shareholders
As of December 31, 2023, Bpifrance Participations
S.A. (“Bpifrance”), on the one hand, and the Italian Ministry of the Economy and Finance (the “Italian Shareholder”),
on the other hand, each directly held 50% in ST Holding. The indirect interest of Bpifrance and the Italian Shareholder in STMicroelectronics
N.V. (the “Company”) is split on a 50%-50% basis. Through a structured tracking stock system implemented in the
articles of association of ST Holding, Bpifrance and the Italian Shareholder each indirectly hold 125,352,377 of the Company’s common
shares, representing approximately 13.9% of its issued share capital as of December 31, 2023. Any disposals or, as the case may be,
acquisitions by ST Holding on behalf of Bpifrance or the Italian Shareholder, will decrease or, as the case may be, increase the indirect
interest of, respectively, Bpifrance or the Italian Shareholder, in the Company’s issued share capital.
On November 17, 2016, Commissariat à
l’Energie Atomique et aux Énergies Alternatives (“CEA”) and Bpifrance, which were, at the time, the shareholders
of FT1CI, entered into a share purchase agreement pursuant to which CEA transferred 721,513 shares of FT1CI to Bpifrance. As a result
of the transaction, Bpifrance increased its shareholding in FT1CI from 79.2% to 95.1%, with CEA retaining the remaining 4.9% in FT1CI.
On November 16, 2018, CEA and Bpifrance entered into a second purchase agreement, pursuant to which CEA transferred 222,265 shares,
representing its remaining ownership interest in FT1CI, to Bpifrance. As a result of this transaction, Bpifrance became the sole shareholder
of FT1CI. This transaction did not impact the beneficial ownership of the Company by any of the reporting persons. On June 21, 2019, FT1CI
merged with and into Bpifrance and ceased to exist. CEA is a French government-funded technological research organization. Bpifrance is
a French public investment entity specializing in the business of equity financing via direct investments or fund of funds. Bpifrance
is a subsidiary owned at 99.99% by Bpifrance S.A., a French credit institution. Caisse des dépôts et consignations, a French
special public entity (établissement spécial) (“CDC”), and EPIC Bpifrance, a French public institution
of industrial and commercial nature (“EPIC”), each hold 49.2% of the share capital of Bpifrance S.A. and jointly control Bpifrance
S.A. CDC is principally engaged in the business of long-term investments. EPIC is principally engaged in the business of banking and finance.
STMicroelectronics Holding II B.V. (“ST Holding
II”) owned 90% of the Company’s shares before its initial public offering in 1994, and over time, gradually reduced its participation,
going below the 66% threshold in 1997 and below the 50% threshold in 1999. ST Holding II merged with ST Holding, effective
June 1, 2012 and ceased to exist. ST Holding may dispose of the Company’s shares as provided below in “—
STH Shareholders’ Agreement—Disposals of the Company’s Common Shares”. Announcements about additional disposals
of the Company’s shares by ST Holding on behalf of one or more of its indirect shareholders, Bpifrance or the Italian Shareholder
may come at any time.
Shareholders’ agreements
STH Shareholders’ Agreement
The Company was formed in 1987 as a result of the
decision by Thomson-CSF (now called Thales) and STET (now called Telecom Italia S.p.A.) to combine their semiconductor businesses and
to enter into a shareholders’ agreement on April 30, 1987, which was amended on December 10, 2001, restated on March 17,
2004 and further amended on February 26, 2008. The February 26, 2008 amended and restated agreement (as amended,
the “STH Shareholders’ Agreement”) supersedes and replaces all previous agreements. The current parties to the STH Shareholders’
Agreement are Bpifrance (as successor to its former wholly-owned subsidiary, FT1CI) and the Italian Shareholder. Following the sale
of its remaining stake in FT1CI to Bpifrance, CEA ceased to be a party to the STH Shareholders’ Agreement.
Pursuant to the terms of the STH Shareholders’
Agreement, the parties have agreed to certain corporate governance rights provided that they maintain certain levels of respective interests
in ST Holding and in the Company’s share capital. See further details below.
Merger of the Holding Companies
Bpifrance and the Italian Shareholder merged the
two holding companies (ST Holding and ST Holding II), effective June 1, 2012, in order to simplify the structure through which they
own their interests in STMicroelectronics N.V. ST Holding II ceased to exist, while ST Holding continues to hold the Company’s
common shares. The company that now holds or may hold the Company’s common shares in the future for indirect shareholders is referred
to below as the “holding company”.
Standstill
The STH Shareholders’ Agreement contains
a standstill provision that precludes any of the parties and the parties’ affiliates from acquiring, directly or indirectly, any
of the Company’s common shares or any instrument providing for the right to acquire any of its common shares other than through
the holding company. The standstill is in effect for as long as such party holds the Company’s common shares through ST Holding.
The parties agreed to continue to hold their stakes in the Company at all times through the current holding structure of ST Holding, subject
to certain limited exceptions.
Corporate Governance
The STH Shareholders’ Agreement provides
for a balanced corporate governance between Bpifrance and the Italian Shareholder (Bpifrance and the Italian Shareholder are collectively
defined as “STH Shareholders” and individually defined as “STH Shareholder”) for the duration of the “Balance
Period”, despite actual differences in indirect economic interest in the Company. The “Balance Period” lasts
as long as each STH Shareholder owns at any time a voting stake in ST Holding equal to at least 47.5% of the total voting stakes
of ST Holding.
As of January 1, 2012, if any STH Shareholder
falls under this threshold, it will not be able to restore the Balance Period by subsequently increasing its voting stake, and the Balance
Period will terminate, unless the parties agree otherwise. The STH Shareholders’ Agreement provides that during the Balance
Period, ST Holding will have a managing board comprised of two members (one member designated by Bpifrance, and one designated by
the Italian Shareholder) and a supervisory board comprised of six members (three designated by Bpifrance and three designated by the Italian
Shareholder). The chairman of the supervisory board of the holding company shall be designated for a three-year term by one
shareholder (with the other shareholder entitled to designate the Vice Chairman), such designation to alternate between the Italian Shareholder
on the one hand and Bpifrance on the other hand. The current Chairman of the Supervisory Board of ST Holding is Mr. Alain
Dutheil and the Vice Chairman is Mr. Antonino Turicchi.
As regards STMicroelectronics N.V., the STH Shareholders’
Agreement provides that during the Balance Period: (i) each of the STH Shareholders (Bpifrance, on the one hand, and the Italian
Shareholder, on the other hand) shall have the right to insert on a list prepared for proposal by the holding company to the Company’s
annual shareholders meeting the same number of members for election to the Supervisory Board, and the holding company shall vote in favor
of such members; (ii) the STH Shareholders will cause the holding company to submit to the Company’s annual shareholders meeting
and to vote in favor of a common proposal for the appointment of the Managing Board; and (iii) any decision relating to the voting
rights of the holding company in the Company shall require the unanimous approval of the holding company shareholders and shall be submitted
by the holding company to the Company’s annual shareholders meeting. The STH Shareholders’ Agreement also provides that the
Chairman of the Company’s Supervisory Board will be designated upon proposal of an STH Shareholder for a three-year term, and the
Vice Chairman of the Company’s Supervisory Board will be designated upon proposal of the other STH Shareholder for the same period,
and vice-versa for the following three-year term. The STH Shareholders further agreed that the STH Shareholder proposing
the appointment of the Chairman be entitled to propose the appointment of the Assistant Secretary of the Company’s Supervisory Board,
and the STH Shareholder proposing the appointment of the Vice Chairman be entitled to propose the appointment of the Secretary of
the Company’s Supervisory Board. Finally, each STH Shareholder is entitled to appoint a Financial Controller to
the Supervisory Board. The Company’s Secretary, Assistant Secretary and two Financial Controllers are referred to as
professionals (not members) of the Company’s Supervisory Board.
During the Balance Period, any decision, to the
extent that a resolution of the holding company is required, must be pursuant to the unanimous approval of the shareholders, including
but not limited to the following: (i) the definition of the role and structure of the Company’s Managing Board and
Supervisory Board, and those of the holding company; (ii) the powers of the Chairman and the Vice Chairman of the Company’s
Supervisory Board, and that of the holding company; (iii) information by the holding company’s managing board and supervisory
board, and those of the Company; (iv) treatment of confidential information; (v) appointment of any additional members of the
Company’s Managing Board and that of the holding company; (vi) remuneration of the members of the Company’s Managing
Board and those of the holding company; (vii) internal audit of STMicroelectronics N.V. and of the holding company; (viii) industrial
and commercial relationships between STMicroelectronics N.V. and the Italian Shareholder or STMicroelectronics N.V. and Bpifrance, or
any of their affiliates; and (ix) any of the decisions listed in article 16.1 of the Company’s Articles of Association
including its budget and pluri-annual plans.
In addition, the following resolutions, to the
extent that a resolution of the holding company is required, must be resolved upon by a shareholders’ resolution of the holding
company, which shall require the unanimous approval of the STH Shareholders: (i) any alteration in the holding company’s
articles of association; (ii) any issue, acquisition or disposal by the holding company of its shares or change in share rights;
(iii) any alteration in the Company’s authorized share capital or issue by the Company of new shares and/or of any financial
instrument giving rights to subscribe for its common shares; any acquisition or disposal by the holding company of the Company’s
shares and/or any right to subscribe for the Company’s common shares; any modification to the rights attached to the Company’s
common shares; any merger, acquisition or joint venture agreement to which the Company is or is proposed to be a party; and any other
items on the agenda of its general shareholders meeting; (iv) the liquidation or dissolution of the holding company; (v) any
legal merger, legal de-merger, acquisition or joint venture agreement to which the holding company is proposed to be a party; and (vi) the
adoption or approval of the Company’s annual accounts or those of the holding company or a resolution concerning a dividend distribution
by the Company.
At the end of the Balance Period, (i.e. once a
shareholder’s voting stake in ST Holding has decreased under the 47.5% threshold (such STH Shareholder being thereafter referred
to as “minority shareholder” and the other one being referred to as “majority shareholder”)), the members of the
Company’s Supervisory Board and those of the holding company designated by the minority shareholder of the holding company will
immediately resign upon request of the holding company’s majority shareholder, subject to the rights described in the following
paragraph.
After the end of the Balance Period, unanimous
approval by the shareholders of the holding company remains required to approve:
(i) As long as any of the STH Shareholders indirectly owns at least the lesser of 3% of the Company’s issued and outstanding share capital
or 10% of the STH Shareholders’ aggregate stake in the Company at such time, with respect to the holding company, any changes to
the articles of association, any issue, acquisition or disposal of shares in the holding company or change in the rights of its shares,
its liquidation or dissolution and any legal merger, de-merger, acquisition or joint venture agreement to which the holding company is
proposed to be a party.
(ii) As long as any of the STH Shareholders indirectly owns at least 33% of the STH Shareholders’ aggregate stake in the Company, certain
changes to the Company’s articles of association (including any alteration in its authorized share capital, or any issue of share
capital and/or financial instrument giving the right to subscribe for the Company’s common shares, changes to the rights attached
to its shares, changes to the preemptive rights, issues relating to the form, rights and transfer mechanics of the shares, the composition
and operation of the Managing and Supervisory Boards, matters subject to the Supervisory Board’s approval, the Supervisory Board’s
voting procedures, extraordinary meetings of shareholders and quorums for voting at shareholders meetings).
(iii) Any decision
to vote the Company’s shares held by the holding company at any general meeting of its shareholders with respect to any substantial
and material merger decision. In the event of a failure by the STH Shareholders to reach a common decision on the relevant
merger proposal, the Company’s shares attributable to the minority shareholder and held by the holding company will be counted as
present for purposes of a quorum of shareholders at one of the Company’s shareholders meetings, but will not be voted (i.e., will
be abstained from the vote in a way that they will not be counted as a negative vote or as a positive vote).
(iv) In addition,
the minority shareholder will have the right to designate at least one member of the list of candidates for the Company’s Supervisory
Board to be proposed by the holding company if that shareholder indirectly owns at least 3% of the Company’s total issued and outstanding
share capital, with the majority STH Shareholder retaining the right to appoint that number of members to the Company’s Supervisory
Board that is at least proportional to such majority shareholder’s voting stake.
Finally, at the end of the Balance Period, the
unanimous approval required for other decisions taken at the STMicroelectronics N.V. level shall only be compulsory to the extent possible,
taking into account the actual power attached to the direct and indirect shareholding together held by the STH Shareholders in the Company.
Disposals of the Company’s Common Shares
The STH Shareholders’ Agreement provides
that each STH Shareholder retains the right to cause the holding company to dispose of its stake in the Company at its sole discretion,
provided it is pursuant to either (i) the issuance of financial instruments, (ii) an equity swap, (iii) a structured finance
deal or (iv) a straight sale. The holding company may enter into escrow arrangements with STH Shareholders with respect
to the Company’s shares, whether this be pursuant to exchangeable notes, securities lending or other financial instruments. STH
Shareholders that dispose of the Company’s shares through the issuance of exchangeable instruments, an equity swap or a structured
finance deal maintain the voting rights of the underlying shares in their ST Holding voting stake provided that such rights remain freely
and continuously held by the holding company as though the holding company were still holding the full ownership of the shares.
As long as any of the parties to the STH Shareholders’
Agreement has a direct or indirect interest in the Company, except in the case of a public offer, no sales by a party may be made of any
of the Company’s shares or of Bpifrance, ST Holding to any of the Company’s top ten competitors, or any company that controls
such competitor.
Change of Control Provision
The STH Shareholders’ Agreement provides
for tag-along rights, preemptive rights, and provisions with respect to a change of control of any of the shareholders or any controlling
shareholder of Bpifrance, on the one hand, and the Italian Shareholder, on the other hand. The shareholders may transfer shares of the
holding company or Bpifrance to any of the shareholders’ affiliates, which would include the Italian state or the French state with
respect to entities controlled by a state. The shareholders and their ultimate shareholders will be prohibited from launching
any takeover process on any of the other shareholders.
Deadlock
In the event of a disagreement that cannot be resolved
between the parties as to the conduct of the business and actions contemplated by the STH Shareholders’ Agreement, each party has
the right to offer its interest in ST Holding to the other, which then has the right to acquire, or to have a third party acquire, such
interest. If neither party agrees to acquire or have acquired the other party’s interest, then together the parties are
obligated to try to find a third party to acquire their collective interests, or such part thereof as is suitable to resolve the deadlock.
Duration
The STH Shareholders’ Agreement will remain
in force as long as the Italian State, on the one hand, and Bpifrance, on the other hand, are shareholders of the holding company.
Preference Shares
On May 31, 1999, the Company’s shareholders
approved the creation of preference shares that entitle a holder to full voting rights at any meeting of shareholders and to a preferential
right to dividends and distributions. On the same day, the Company entered into an option agreement with ST Holding II as a
protective mechanism against hostile takeovers or similar actions that are determined to be contrary to the interests of the Company and
its shareholders. On November 27, 2006, the Company’s Supervisory Board decided to terminate the May 31, 1999
option agreement, as amended. A new option agreement has been entered into with Stichting Continuiteit ST (the “Stichting”),
which is a foundation independent from the Supervisory Board and the Company’s major shareholders. The May 31, 1999
option agreement, as amended, was terminated by mutual consent by ST Holding II and the Company on February 7, 2007.
The new option provides for the issuance of 540,000,000
preference shares, the same number as the May 31, 1999 option agreement. The preference shares would be issued by the
Company to the Stichting, upon the latter’s request and in the latter’s sole discretion. The preference shares
would be issuable in the event of an unsolicited offer or acquisition, which is unsupported by the Company’s Managing and Supervisory
Boards and which the Stichting determines would be contrary to the interests of the Company and the Company’s shareholders. If
the Stichting exercises its call option and acquires preference shares, it must pay at least 25% of the par value of such preference shares. If
the Stichting has exercised the option, it is obliged to cancel the preference shares after two years. This measure is effected
by the Stichting requesting the Supervisory Board to proceed with the cancellation of the preference shares issued to it against repayment
of the amounts paid up on the preference shares. Under the Company’s articles of association, the general meeting of
shareholders must approve any cancellation of preference shares upon a proposal made to this effect by the Supervisory Board.
No preference shares have been issued to date. The
effect of the preference shares may be to deter potential acquirers from effecting an unsolicited acquisition resulting in a change of
control. In addition, any issuance of additional capital within the limits of the Company’s authorized share capital,
as approved by its shareholders, is subject to approval by its Supervisory Board, other than pursuant to an exercise of the call option
granted to the Stichting.
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