Renault: the state amounts to almost 20% of the capital – Boursorama

The state will rise to 20% in the capital of the manufacturer Renault (AFP / Philippe Huguen)

The government announced on Thursday the purchase of an additional 4.7% of Renault’s capital, bringing its stake to 19.7%, to force the automaker to adopt double voting rights, a device from the Florange law.

The state has already acquired 9.56 million shares and will buy 4.44 million for a set amount “between € 814 million and € 1.232 million,” according to a statement from the Ministries of Economy and Finance.

This reinforces prior to the General Meeting of 30 April Renault, during which hostile investors hope bury the double voting rights.

At the end of his purchases, the State control 23.2% of voting rights exercisable.

Given the very fragmented ownership of Renault, and the rate of participation in general meetings well below 100%, this level should according to a source at the Ministry of Economy possible to control the thirds of the votes at the general meeting.

This is the level required to block a resolution put to the vote of Renault shareholders, who wants to prevent the automatic implementation of double voting rights.

Florange law or “law to reclaim the real economy of 29 March 2014 provides that unless otherwise decided by the General Meeting, shareholders who hold their shares for at least two years are rewarded by the grant double voting rights: after two years each share held gives them two votes at general meetings, “he recalled in a statement

In other words, the. transition to double voting rights is automatic unless a majority vote of two-thirds to maintain simple voting rights.

“This is an effective way to encourage investors to keep their shares, and So to better contribute to the development of the company, strengthening the influence of long-term shareholders, including employee shareholders “as opposed to short-term speculators, trusts Bercy.

At the Department Economy, it is stressed that the government is committed to enforcing this device in the companies of which he is a shareholder.

The state has provided a way out after this act of authority Renault, which “foreshadowed in no case a sustained movement upward or downward on its participation in the company’s capital,” the statement said.

Indeed, he protected his maneuver by put options “fixed price” for a period of six months, which will allow it if he wants to sell these newly acquired 14 million shares without financial damage due to market fluctuations.

Double voting rights are not unanimous among investors, including certain funds tied to the previous “one share, one vote”. The press Bercy stresses however that they “are already a reality in more than half of the CAC 40 companies.”

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