(AOF) – Béatrice Stern, Cécile David-Weill, Natalie Merveilleux du Vignaux, Agathe Mordacq (David-Weill family), collectively holding 9.4% of the capital, reaffirm their commitment to Eurazeo by renewing in advance the shareholders’ agreement concluded in April 2018. They thus continue the commitment of their father, Michel David-Weill, founder and Chairman of the Supervisory Board of the investment company for more than 20 years. The mechanisms agreed in 2018, including in particular the second right of first refusal granted to Eurazeo, remain in place and have been slightly modified.
This pact will replace the 2018 pact and will take effect at the end of the said pact, i.e. April 6, 2023 for a period of three years, renewable.
Jean-Manuel de Solages, Amaury de Solages, and Constance Broz (Solages family), holders of 5.6% of the capital, who are parties to the aforementioned agreement of April 2018, have entered into a new shareholders’ agreement with Eurazeo. On this occasion, they grant Eurazeo a right of prior negotiation or a right of first refusal, depending on the number of shares whose sale is planned. This pact will replace the 2018 Pact also concerning them from April 6, 2023 for a period of three years.
Alain Guyot and Hervé Guyot (Guyot family), holders of 0.5% of the capital, also enter into a new shareholders’ agreement and grant priority trading rights to Eurazeo. This pact will take effect on January 1, 2023 for a period of three years. It is recalled that the above-mentioned persons were parties to the shareholders’ agreement of April 29, 2010 described in the Eurazeo Universal Registration Document which expires on December 31, 2022 and which will not be renewed.
These three pacts were submitted for the approval of the Eurazeo Supervisory Board at its meeting of November 30, 2022 and were communicated to the AMF in accordance with the applicable legal provisions and were the subject of the attached publication.
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Key points
– Global investment company created in 2001;
– 31 billion in assets under management, of which 69% on behalf of third parties: 74% in private equity, 21% in private debt and 5% in real estate;
– Business model:
– 4 strengths: equity guaranteeing the group’s independence, a strong presence in 10 countries and 4 continents, strong and longstanding commitment to CSR,
– 2 priorities: to become the reference investment platform in Europe, each division being number 1 on its market, and to continue the fundraising dynamic,
– 2 complementary growth issues: asset management for predictable and recurring income and investment in companies not exposed to cycles or with strong growth potential;
– Private equity with Eurazeo Capital: (companies valued at over €200m), SMEs (€50 to €200m), EuroBrands (brands with international potential), Eurazeo Growth (technology companies with a proven business model), China Acceleration , Venture (digital-focused innovation capital), Private Debt (European SMEs and ETIs, etc.);
– Capital structured between JC Decaux holding (17.86%), the Michel David-Weill family (16.71%) and the Richardson family (3.55%), Jean-Charles Decaux chairing the 15-member supervisory board and Virginie Morgon the Executive Board;
– Solid debt-free balance sheet with net cash of €21 billion in equity at the end of June.
Challenges
– Medium-term strategy aimed at doubling assets under management to €60 billion in 2026-2028 and a margin of 35-40% compared to 30% in 2021;
– Innovation strategy led by a digital committee within the supervisory board in charge of accelerating the integration of digital into operational activities, analyzing the digital environment and assessing cyber risk;
– “O +“ environmental strategy validated by the SBTi, applicable to the 350 companies in the portfolio and aiming for net zero emissions by 2040: focus on biodiversity / 83% of active funds eligible for the European taxonomy and launch of impact funds / 20 % of managed funds dedicated to the low-carbon economy – maritime, sustainable and digital infrastructure or health, etc.;
– Continuation of investments -rise to 71% in the capital of biotech Kurma, investments in Contentsquare and Electra, Imapole, Sevetys- and fund openings;
– Reinforcement of positions in tech (1st investor in France and Europe) and in the “brands” activity for the deployment of strong brands;
– Balance of the portfolio, no company representing +10% of the NAV and the share of listed companies being limited to 4%.
Challenges
– Monitoring of the revalued net assets, of €115.1, to be compared to the stock market price;
– Continuation of the increase in revenues of the companies in the portfolio posted in the 1st half;
– Expectations, after a decline in disposals resulting in a negative result of €96 million in the 1st half, of results in line with the medium-term strategy;
– €100 million share buyback program.