The 3.12% shareholdings of France in Safran is up for sale. The proceeds from the sale of the aerospace group's shares would be used to fund investments to boost the country's economy.
The total lot is 13 million shares and will be placed with institutional investors through an accelerated book-building platform, according to a statement by the French Finance Ministry. Even with the sale, the French interest would remain as the biggest shareholder at 27.08%. Another unique aspect of the shareholdings is its double weighing of votation rights, thus it will retain the same power within the company's board.
In a statement, the French Finance Ministry said, "The state also intends to remain the reference shareholder within Safran's capital in the medium term."
Safran's operating profit for 2012 rose by 24% as the strong demand for aircraft engines, parts and maintenance contracts buoyed the performance up until early this year. As of closing, Safran share values increased by 0.2% to Eur35.49 per share.
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