Nissan to Buy Back 2.5% Stake From Renault — Update
By David Sachs
Renault plans to sell Nissan a portion of its stake in the Japanese carmaker that is currently valued at 362 million euros ($392.1 million) as part of its plan to regain an investment grade rating.
The French carmaker said Wednesday that the sale, of up to 100.2 million Nissan shares, represents about 2.5% of its stake. Renault has the option to sell its remaining stake in Nissan--180 million shares--either to Nissan or a third party over the next six months, it said.
Renault said the move will quicken its debt reduction and support is goal of returning to an investment grade credit rating.
Nissan plans to cancel the shares for a shareholder payout, the company said Wednesday.
Apart from the cash inflow, Renault said the group would book a capital loss of EUR450 million on its consolidated financial statement, but a gain of EUR50 million for the listed entity.
Renault sold a chunk of Nissan shares in December as part of the French company's aim to whittle its holdings down to about 15% as part of an agreement between the longtime partners.
Write to David Sachs at david.sachs@wsj.com
(END) Dow Jones Newswires
March 27, 2024 05:32 ET (09:32 GMT)
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