Renault is asking the French state to revert to its 15% stake in the automaker following a surprise hike in Paris’ stake to almost 20% last week.
At a snap board meeting called in the French capital, Renault directors urged CEO, Carlos Ghosn to ensure the “balance” between the two main shareholders be maintained at the next general assembly or restored afterwards.
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“The board is asking to keep the equivalent that has existed before last week with 15%,” a Renault spokeswoman told just-auto from Paris.
The French state’s move to up its stake in the automaker is based on its Loi Florange designed to allow those holding shares for at least two years to be granted double voting rights.
The state maintains this is a way to encourage investors to keep hold of shares and to increase the influence of shareholders in the long term, while also pointing out such double voting is already a reality in more than half of businesses on the French CAC 40 stock exchange.
“The state has taken more shares – 5% more,” added the Renault spokeswoman. “One of the resolutions at the AGM is not to have double votes.”
Unless Renault shareholders at their annual general meeting in Paris on 30 April decide against, the French state will acquire 14m shares or 4.73% of the capital for a price between EUR814m (US$880m) and EUR1.23bn.
“Since the [Renault-Nissan] Alliance began in 1999, its sustainability and success have been based on a balance of cross-shareholdings,” said a Renault statement.
“Since 1999, Renault and Nissan have been team members. The stability of the partnership between Renault and Nissan explains the success of the alliance which has directly benefited both partners.
“With this in mind, the board of directors reaffirmed its support for Resolution No.12, which will be presented to the general assembly meeting to be held on 30 April, due to the specific situation of voting rights in the alliance.
“The board also asked the balance between Renault’s two main shareholders be maintained at the next general assembly or restored afterwards.”
