Bpifrance Acquires APE’s Stake in PSA Group

The Agence des Participations de l’Etat (APE), a French government holdings entity overseeing around 70 firms, sold its 12.7% ownership stake in automobile manufacturer PSA Group (also known as Groupe PSA) to Bpifrance for €1.92 billion (US$ 2.1 billion). This represents a €1.12 billion capital gain for APE.

Paris-based PSA Group makes cars and other vehicles under brands such as Citroën, DS Automobiles and Peugeot. Both state entities reiterated the French government would retain two board seats on PSA Group. The actual transaction plans to occur on May 20, 2017 during PSA Group’s annual shareholder meeting. PSA Group is also waiting for approval to acquire Opel from General Motors.

Dongfeng Motor (Hong Kong) International Co., Limited and Établissements Peugeot Frères, the Peugeot family holding company, remain key shareholders in PSA Group.

On March 14, 2017, PSA launched a €600 million bond issue with a 7-year maturity. The bond issue was helped by BNP Paribas, CA CIB, Commerzbank, HSBC, Natixis, Santander, Société Générale, BBVA, CM CIC, Citi and NatWest Markets.

Bailouts and Conflict of Interest

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