PARIS, FRANCE: Renault Group has announced that it will sell up to 211 million Nissan shares, or 5% of Nissan capital, to Nissan as part of the latter’s share buyback program.
The sale, which will take place on December 13, 2023, will improve Renault Group’s net financial position by €765 million, but also result in a capital loss of up to €1.5 billion in its consolidated financial statements.
The capital loss could be adjusted at year-end depending on Nissan’s capital allocation strategy. Renault Group will also record a capital gain of up to €50 million in its company statements.
The sale is in line with the New Alliance Agreement, which stipulates that Renault Group and Nissan will maintain cross-shareholdings of 15%.
The sale also fits in with Renault Group’s capital allocation strategy, which aims to implement the strategic projects of the “Revolution” phase of the Group, improve its operating performance and free cash flow generation, reduce its debt, return to an investment grade credit rating, increase its dividend pay-out ratio, implement employee shareholding plans, and reinvest at least 50% of the excess cash generated by the Group.
Renault Group is at the forefront of a mobility that is reinventing itself. Strengthened by its alliance with Nissan and Mitsubishi Motors, and its unique expertise in electrification, Renault Group comprises 4 complementary brands – Renault, Dacia, Alpine and Mobilize – offering sustainable and innovative mobility solutions to its customers. Established in more than 130 countries, the Group has sold 2.1 million vehicles in 2022.
It employs nearly 106,000 people who embody its Purpose every day, so that mobility brings people closer. Ready to pursue challenges both on the road and in competition, Renault Group is committed to an ambitious transformation that will generate value.
This is centred on the development of new technologies and services, and a new range of even more competitive, balanced, and electrified vehicles. In line with environmental challenges, the Group’s ambition is to achieve carbon neutrality in Europe by 2040.
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