Renault to sell Nissan stake of about 2.5%

RENAULT plans to sell a stake of about 2.5 per cent in Nissan shares to the Japanese car maker in a deal that could result generate up to 362 million euros (S$528.5 million), the French firm said on Wednesday (Mar 27).

The share sale is its second as Renault looks to cut its Nissan stake to 15 per cent from around 43 per cent as the two firms reshape their longstanding partnership.

Renault sold a 5 per cent stake in Nissan back to the Japanese company in December.

The latest sale of up to 100,242,900 Nissan shares are part of the 24.63 per cent in Nissan’s capital that Renault has put into a French trust.

The sale will be implemented as part of a share buyback programme announced by Nissan, Renault said.

“This transaction will allow faster deleveraging and supports the group’s determination to return to an investment grade rating,” Renault said in a statement.

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Renault has the right to sell a further 180,447,100 Nissan shares that were offered but have not been bought back by the Japanese firm to third parties during a 180-day period.

As part of an agreement last year to reduce their alliance, Renault and Nissan aim to have cross-shareholdings of 15 per cent. REUTERS