Renault SA (OTC:RNLSY) revealed a second transaction with its intention to sell to Nissan Motor Co Ltd's (OTC:NSANF) (OTC:NSANY) up to 100.24 million Nissan shares, representing approximately 2.5% of Nissan's capital.
This transaction follows the sale of Nissan shares on December 13, 2023.
The sale results from Nissan's exercise of its right of first offer to acquire its shares after a notice from Renault expressing its intention to sell 280.7 million Nissan shares, representing up to 7% of Nissan's capital.
Renault has the option to sell the remainder of the 180.4 million Nissan shares that have not been bought back by Nissan, during a 180-day period to Nissan or to third-parties.
The stake sale will be implemented as part of the share buyback program announced by Nissan on March 27, 2024.
Nissan has also announced its decision to cancel all the acquired shares which will be accretive for Nissan's shareholders.
The shares to be sold are part of the 24.63% of Nissan's capital held by a French trust.
Assuming 100.2 million shares are sold at a share price of ¥593.4, it will result in a cash inflow of up to €362 million, which would improve the automotive net cash financial position of Renault.
Price Action: RNLSY shares closed higher by 1.93% at $10.02 on Tuesday.
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