Renault: Renault employees will own 4.7% of the car manufacturer’s capital in February

(BFM Bourse) – The diamond group announced on Monday the results of its “Renaulution Shareplan” employee shareholding plan, which saw more than 40,000 employees subscribe to additional shares. By the end of the decade, the car manufacturer wants the shareholding to represent 10% of its capital.

Renault has taken the first step in a project that should lead it to almost triple the presence of its employees in its capital. The car manufacturer thus announced on Monday the result of its employee shareholding plan “Renaulution Shareplan” which had been open from November 24 to December 12.

This plan had two components. The first provided for the allocation of six free shares to eligible employees of the group, that is to say to simplify almost all. The second component encouraged employees from 21 countries of the company to strengthen their group by offering them both a 30% discount on the price and the additional allocation of six free shares for the first two purchased.

In other words, a Renault employee could via this plan own 14 additional shares, by paying only two shares with a discount of 30%. The acquisition price including this discount was then set at 22.02 euros per share.

More than 40,000 employees have subscribed

In the end, 40,307 employees subscribed for additional shares, with an average investment of 1,160 euros per person, representing a total of 41.5 million euros for 1.9 million shares, the company said.

Also including the additional shares offered by Renault, a total of 2.698 million shares will be issued to employees on February 7, either to a company mutual fund or, in certain countries, to an account nominative.

The share of employee shareholding in the capital of the diamond group will then increase to around 4.7% against around 3.6% before this operation.

However, this is only a first step for Renault, which aims to increase this share to 10% by 2030, as it announced during its day dedicated to investors last November. The idea being for the company “to involve employees in its performance to promote a common feeling of belonging to the project and nurture a culture of value”.

Many residents of the CAC 40 have a large hard core of employee shareholders. This is particularly the case for TotalEnergies and Bouygues, with respective holdings of 6.8% and 20.60%.

Julien Marion – ©2023 BFM Bourse