This sale results from the exercise by Nissan of its right of first offer to acquire 99,132,100 Nissan shares following a notice from Renault Group expressing its intention to sell 280,690,000 Nissan shares (representing up to 7% of Nissan capital)
This sale results from the exercise by Nissan of its right of first offer to acquire 99,132,100 Nissan shares following a notice from Renault Group expressing its intention to sell 280,690,000 Nissan shares (representing up to 7% of Nissan capital). Pursuant to the New Alliance Agreement, Renault Group has the option to sell the remainder of the Nissan shares that have not been bought back by Nissan, representing 181,557,900 Nissan shares, during a 180-day period to Nissan or to third-parties.
This sale was implemented as part of the share buyback program announced by Nissan on March 27, 2024 and implemented on March 28, 2024. As a result of Nissan’s decision to cancel all the bought back shares, the transaction will be accretive for Nissan’s shareholders (see table below for more details). This cancellation will be implemented on April 3, 2024.
As a consequence of the sale of 99,132,100 Nissan shares, the accounting impacts will be the following:
- On Renault Group consolidated financial statements: a capital loss on disposal of around €440 million, which will impact the net income (this capital loss, booked in “other operating income and expenses”, will not impact the Group’s operating income).
- On Renault S.A. statutory statements: a capital gain on disposal of around €50 million.
Evolution of Nissan capital held by Renault Group
In accordance with the New Alliance Agreement, Renault Group has no obligation to dispose of the 1.19% in excess of the 15%, and Nissan will continue to hold a 15% stake in Renault Group. However, the voting rights of Renault Group and Nissan will continue to be capped at 15%.
SOURCE: Renault Group