French bank Credit Agricole on Thursday said it will reduce its 18.3% stake in investment company Eurazeo. According to Reuters, Credit Agricole will be selling shares and convertible bonds. The divestment was reportedly aimed to bolster the bank's balance sheet in order to meet tougher capital demands.
Reuters said Credit Agricole will sell at least 3.2 million Eurazeo shares in a private placement. It would also sell zero-coupon bonds convertible into a maximum of 5.1 million Eurazeo shares.
The placement accounts for about EUR179.2 million worth of Eurazeo stock, while the bond sale represents up to EUR285.7 million, the report said.
Credit Agricole is the third biggest bank in France. It is the single, largest shareholder in Eurazeo. Credit Agricole also recently sold its stake in Spanish commercial bank Bankinter and exited its operations in Greece, Reuters stated.
Meanwhile, investment firm Eurazeo has made investments in electrical supplies distributor Rexel, care hire company Europcar and clothing brand Moncler. It has a market value of EUR5.2 billion, based on Reuters data.
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