Renault Group said it will sell to Nissan up to 211,000,000 Nissan shares, or about 5% of the Japanese automaker’s capital, among the 28.4% of shares that were transferred into a French trust on 8 November, 2023.
This sale will be implemented as part of the share buyback programme announced today (12 December) by Nissan which will be executed tomorrow.
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In accordance with the New Alliance Agreement, Renault Group and Nissan will continue to hold cross shareholdings of 15%.
Assuming a maximum number of 211,000,000 Nissan shares sold at a share price of JPY568.5, this sale would result, at the transaction date, in a disposal value of up to JPY765m which would improve the net financial position of Renault Group Automotive segment; a capital loss on disposal of up to EUR1.5b which would impact the net income in Renault Group’s consolidated financial statements (this capital loss, booked in ‘other operating income and expenses’, would not impact the group’s operating income). This amount is a maximum that could be adjusted at year end to reflect Nissan’s capital allocation strategy; a capital gain on disposal of up to EUR50m in the company statements of Renault SA.
The transaction will have no impact on the remaining Nissan shares on the balance sheets of Renault Group and Renault SA, the automaker said in a statement.
This disposal fits in with Renault Group’s capital allocation strategy.
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