Renault Group to Offload Approximately 5.0% of Nissan's Capital by Selling Nearly 195 Million Shares to Nissan
Renault Group to Sell Nissan Shares for €494 Million Cash Inflow
The Renault Group has announced plans to sell 195,473,600 shares of Nissan, a move that could generate up to €494 million in cash for the French automaker. This sale does not involve any specific individual or entity other than the French trust and Renault Group.
The French trust currently holds 22.73% of Nissan's capital, a portion that was initially transferred from Renault Group on November 8, 2023. It's worth noting that a portion of these shares (22.73%) were sold in September 2024, which were initially transferred into the French loyalty fund by Renault.
The closing price of a Nissan share on September 26, 2024, was ¥408.5, restated from ¥5. The sale of these shares will result in accounting impacts, but the tax impact of the transaction is non-significant.
If all shares are sold, the transaction would lead to a capital loss on disposal for Renault Group, with a maximum estimated impact of €1,100 million on consolidated financial statements. However, this capital loss will not affect the Group's operating income. On Renault S.A. statutory statements, a capital loss on disposal of €120 million is expected.
The sale of the Nissan shares would further improve the Automotive net cash financial position of Renault Group. This move is part of Renault Group's efforts to delever and return to an investment grade rating.
It's important to note that, as of September 27, 2024, the Tokyo Stock Exchange share buyback rules require deducting the 2023 interim dividend (¥5) from the announcement date's closing price for Nissan shares due to the ex-dividend date for Nissan's fiscal year 2024 interim dividend.
This sale is expected to support Renault Group's ongoing strategic initiatives and strengthen its financial position.
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