Renault accepts limited voting rights in Nissan
(ABM FN-Dow Jones) Automakers Nissan and Renault have agreed to renegotiate their decades-long partnership, with Renault transferring a 28.4 percent stake in Nissan to a French trust, partially neutralizing the French company’s voting rights. Both the car manufacturers announced this on Monday.
At the same time, both companies want to launch new operational projects that create more value in Latin America, India and Europe.
Nissan is investing in Renault’s electric car maker Ampere to become a strategic partner. Last year, Renault had already indicated that it would take the Ampere public. That will happen very soon in the second half of this year.
In terms of mutual co-ownership, Renault and Nissan retain a 15 percent interest in each other’s companies.
Renault then places the remaining 28.4 percent of Nissan shares in a French trust, where voting rights for most decisions are neutralized, but Renault retains rights to dividends and share sales until the shares are sold.
Renault may instruct the Trustee to sell the Nissan Shares at any time, but is under no obligation to do so at any time. Media reports emerged last year that Renault wanted to sell part of its interest in Nissan to invest more in electric cars.
Source: ABM Financial News
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