Nissan will buy back 5% of its shares from Renault – Kommersant
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Nissan Motor reported, which will buy back about 211 million of its shares from the Renault Group. This is approximately 5% of the Japanese automaker’s share capital. Upon completion of the transaction, the shares will be cancelled.
As part of the procedure reforming alliance with Nissan, Renault reduced its stake in the Japanese company from 43% to 15%, transferring 28.4% of Nissan shares to a French trust fund. The divested shares do not give their owners the right to vote on most matters affecting the management of Nissan, but continue to provide financial benefits to the owners. Moreover, the agreement provided for the right of Renault to sell these shares either to Nissan itself or, in agreement with the Japanese company, to a third party. And the Japanese company retains the right of priority to repurchase these shares. The Japanese manufacturer used it.
At the same time, Nissan will pay about €765 million for the repurchase of its shares, and Renault’s loss from the depreciation of this asset could ultimately reach €1.5 billion, the French concern notes. This will seriously affect the financial statements of Renault, whose net profit in the first half of the year amounted to €2 billion. Nevertheless, the deal will increase the company’s liquidity reserves, Renault noted.
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