(AOF) – Renault Group (+0.05% to 46.826 euros) announces a second sale of Nissan shares. The diamond brand intends to sell up to 100.242 million Nissan shares to its Japanese partner, representing approximately 2.5% of the Japanese manufacturer’s capital. This sale results from the exercise by Nissan of its right of first offer following a notification from Renault Group expressing its intention to sell approximately 7% of the capital of the Japanese group, or 280.69 million shares.
As part of the implementation last year of the new Alliance agreement, Renault transferred 28.4% of Nissan shares (out of a total of 43.4%) to a French trust. If Renault Group has complete freedom to sell the Nissan shares held by the trust, Nissan benefits from a right of first offer, for its benefit or for the benefit of a designated third party.
Nissan has indicated its decision to cancel the acquired shares which will have an accretive effect on earnings per share.
The French group already sold around 5% of the capital of the Japanese car manufacturer in December and saw the stake housed in the trust fall to 24.63%.
Renault specifies that the sale of shares announced today would result in a positive cash flow of up to 362 million euros and improve the net financial position of its Automotive division. It would represent a capital loss on sale of up to 450 million euros which would have a negative impact on the 2024 net profit, but not on the operating profit.
Under the new Alliance agreement, Renault Group has the option to sell the remainder of the 180.447 million shares that have not been repurchased by Nissan, over a period of 180 days to the Japanese manufacturer or third parties.
The diamond brand underlines that this “operation will accelerate debt reduction and support the group’s determination to regain an investment grade financial rating”.
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