By Jason Chow
PARIS--The French government on Tuesday announced plans to
reduce its stake in energy group Engie SA as part of a series of
asset sales slated for the coming months.
Finance Minister Michel Sapin and Economy Minister Emmanuel
Macron said the state has hired banks to carry out the sale of just
over 22 million shares, representing 0.9% of the total stock, in
the company formerly known as GDF Suez SA over the next three
months. Based on Monday's closing price, the shares are worth
EUR372 million ($418 million).
The sale aims "to preserve the wealth and strategic interests of
the state," the government said. Proceeds of the sale will be used
to pay down government debt and to invest in "growth sectors" of
the French economy, the state said.
The French government owns stakes in dozens of listed companies
across the air transportation, car manufacturing, utilities and
telecommunications industries. Over the past year, the government
has repeatedly said it intends to sell shares in companies to pay
down debt and reinvest into other sectors.
Last year, the government announced it was planning to raise as
much as EUR14 billion in asset sales through 2016, with EUR4
billion dedicated to debt repayment and between EUR5 and EUR10
billion marked for reinvestment. The government didn't specify in
which companies it would reduce its stake.
So far this year, the state has sold a 4% stake in aircraft
engine manufacturer Safran for EUR1 billion in March.
In January 2014, France sold 1% of Airbus Group for EUR451
million.
Though the government is paring back its equity in
publicly-traded companies, it is not sacrificing influence in the
boardroom. Last year, Paris passed the Florange Law, which doubles
the voting rights of those who have owned shares for longer than
two years.
The French state said it currently owns 33.2% of Engie, making
it the company's largest shareholder. Thanks to the double-voting
provision, the government could retain one-third of the company's
votes with as little as one-fifth of the shares, according to a
report from brokerage firm Bryan Garnier.
Write to Jason Chow at Jason.Chow@wsj.com
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