(CercleFinance.com) – Thales announced on Friday that it had signed an agreement to ensure the entirety of its pension plan in the United Kingdom, a decision which will result in the recognition of a financial charge.
Under the agreement, the French aerospace, defense and security group will transfer to Rothesay, a pension insurance specialist, some £2.7 billion of gross liabilities, as well as investments of corresponding regimes.
The company explains that this operation will make it possible to guarantee the benefits of all members of the plan, which includes defined benefit commitments for more than 10,500 retirees and beneficiaries, as well as for almost 6,000 other members whose rights are deferred.
Thales emphasizes that it will thus be able to free its balance sheet from the potential volatility in the valuation of pension plans resulting from market risks such as inflation, interest rates or longevity risks.
Once the deal is completed, he will no longer have to contribute £75 million a year to reduce the pension fund deficit.
From a financial perspective, Thales expects to book a one-off charge of approximately £400 million in the fourth quarter, as well as a non-recurring outlay of approximately £850 million by the end of the year.
The company emphasizes, however, that these measures will affect neither its current operating profit (Ebit) nor its free cash flow (FCF) over the current financial year.
After the implementation of a first technical step today, the complete transfer of the pension fund should be effective by mid-2025 at the latest, the group specifies in a press release.
These announcements had no effect on Thales shares, which rose 1.4% on Friday morning in early trading on the Paris Stock Exchange.
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