‘Wave Of Privatisation’ Takes Off In France & Moves Towards ‘Planned Innovation Fund’


09/06/2017

The Ministry of Finance in France, under the President’s wish, sells Engie’s stake and begins to “redeploy state funds locked up in companies”.



The government of France has up its sleeves a plan of “asset sales”, whereby the same process was kick started by selling off “a 4.5 percent stake in gas utility Engie SA” in a deal of “1.53 billion euros”, reported the Ministry of Finance.
 
The plan was announced in the month of July and comprises of “10 billion-euro state asset sales”, while the sale of Engie marks only the “first step”, revealed the Finance Minister of France, Bruno Le Maire. In his words:
“The proceeds of this operation will go towards the planned innovation fund”.
 
Moreover, Maire also added that the resources of the stated will be deployed where it is “most needed” and “fund innovation” happens to be one such notable areas. While, the President of France, Emmanuel Macron, had stated that “he wants to redeploy state funds locked up in companies in non-strategic, mature industries to invest in innovative start-up companies”.
 
On the other hand, in a “separate statement” issued by the APE state “holding company” after the “stake sale” including “a 4.1 percent stake to institutional investors at 13.80 euros per share”, the company said that it will own “24.1 percent of Engie’s capital and 27.6 percent of the voting rights”, while the state will continue to be the “leading” shareholder of Engie even after the sale.
 
Furthermore, Reuters also added:
“The operation also included the sale of a 0.46 percent stake to Engie itself, which will be used for employee share awards”.
 
However, during last month, sources of banking sector informed that Engie, the “main airport operator” of Paris also termed as the “national lottery” by Reuters, along with “several other firms deemed not strategic” were meant to surf the “wave of French privatisations” scheduled to hit “this autumn”.
 
 
 
References:
reuters.com