Sale of 20 million Saint-Gobain shares, i.e. 3.6 % of Saint-Gobain’s share capital
Continued shift towards unlisted assets
Full confidence in Saint-Gobain’s strategy reiterated by Wendel
Wendel has completed the sale of 20 million Saint-Gobain shares, i.e. 3.6% of the share capital, representing a total
amount of approximately €1 billion. Wendel now owns a stake of approximately 2.5% in Saint
Gobain’s share capital and approximately 4.5% of its voting rights. The existing governance agreements will remain in force.
This sale and the 0.3% of the share capital sold on the market since May 19, 2017, at an average price of €50.113 per
share, represented a total cash inflow of €1.085 billion for Wendel which will complement the resources available to
implement its investment strategy for 2017-2020.
The sale of Saint-Gobain shares achieved today will result in an accounting gain of approximately €100 million booked
in Wendel’s 2017 financial statements. This accounting gain is calculated on all the Saint-Goban in shares owned by
Wendel before the sale, in compliance with IFRS accounting rules.
As part of its share buyback program, Saint-Gobain placeda 1 million share order at the Placement price.
Wendel reaffirms its full support to Saint-Gobain’s strategy, as it confirmed during its investor day held on May 17,
2017, its intention to show margin improvement potential, as cost savings will now amount to at least €1.2 billion
over the 2017-2020 period.
Financial discipline will continue to be a key focus area and Portfolio optimization will be a key
value creation driver thanks to the acceleration of acquisitions (€2 billion over the period) and disposals of non-strategic businesses (€1 billion over the period).
Frédéric Lemoine, Chairman of Wendel’s Executive Board,commented:
“This transaction is in line with Wendel’s strategy to pursue its shift towards unlisted assets.
Our 2017-2017 strategic plan and the attendant value creation goals are intended to deliver a double-digit average rate of return for our shareholders, together with increasing dividend year-on-year and share buybacks, while continuing an investment strategy firmly oriented toward diversification, and preserving the strength of our company’s financial structure. I am very pleased that Wendel can be associated with Saint-Gobain’s development, I am fully confident in the promising
strategic prospects that have just been presented to the market by Saint-Gobain.”
BNP Paribas, Citigroup and Goldman Sachs acted as joint bookrunners of this transaction.
Goldman Sachs is sole global coordinator of the transaction.
Wendel has agreed with them to a lock-up commitment not to carry out a similar
transaction in the market for the next 3 months, subject to certain usual exceptions.