Renault Group to sell to Nissan up to 211,000,000 Nissan shares representing approximately 5% of Nissan capital
12 December 2023 - 6:36PM
Renault Group to sell to Nissan up to 211,000,000 Nissan shares
representing approximately 5% of Nissan capital
Press ReleaseDecember 12, 2023 |
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Renault Group to sell to Nissan up to
211,000,000 Nissan shares representing approximately 5% of Nissan
capital
Boulogne-Billancourt, December 12th, 2023
Renault Group announces that it will sell to
Nissan up to 211,000,000 Nissan shares, representing approximately
5% of Nissan capital, among the 28.4% of Nissan shares that were
transferred by Renault Group into a French trust on November 8,
2023.
This sale will be implemented as part of the
share buyback program announced by Nissan on December 12, 2023, and
that will be executed on December 13, 2023.
In accordance with the New Alliance Agreement,
Renault Group and Nissan will continue to hold cross-shareholdings
of 15%.
Assuming a maximum number of 211,000,000 Nissan
shares sold at a share price of ¥568.5, this sale would result, at
the transaction date, in:
- a disposal value of up to €765
million, which would improve the net financial position of Renault
Group Automotive segment;
- a capital loss on
disposal of up to €1.5 billion, which would impact the net income
in Renault Group’s consolidated financial statements (this capital
loss, booked in "other operating income and expenses", would not
impact the Group's operating income). This amount is a maximum that
could be adjusted at year-end to reflect Nissan’s capital
allocation strategy;
- a capital gain on disposal of up to
€50 million in the company statements of Renault S.A.
The transaction will have no impact on the
remaining Nissan shares on the balance sheets of Renault Group and
Renault S.A.
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.
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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