French government sells 14 million Renault shares

French Government sells 14 million Renault shares

Only 15% of Renault is now owned by the French state; Renault will buy back 1.4 million shares, which will be offered to employees

The French government, the largest shareholder in Renault, has reduced its stake in the company to 15%, from 19.73% previously. The shares were sold for £1.07 billion.

Renault has announced that 10% of these shares will be offered to employees to give them a say in the way the company is run.

The French government previously owned 15% of the company. In 2015, it bought the additional 4.73% stake when a legislative change regarding the voting rights of long-term shareholders prompted then economy minister Emmanuel Macron to increase the Renault holding, albeit temporarily, reports Bloomberg.

France remains Renault’s largest shareholder, ahead of Nissan, by a small margin.

Renault is currently valued at £22.6bn. The brand aims to increase this with an ambitious plan to boost operating profit and strengthen sales in existing and new segments. It’s part of Renault’s Drive the Future initiative, which was recently detailed.

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Source:: Autocar