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

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Engie (EU:ENGI)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Engie Charts.
Engie (EU:ENGI)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Engie Charts.