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Airbus Group to sell part of Dassault Aviation back to French planemaker

Airbus Group to sell part of Dassault Aviation back to French planemaker

PARIS: Airbus Group sells 8 percent of Dassault Aviation back to the French planemaker in a deal value 794 million euros (632.10 million pounds) on Friday.

Airbus Group sold the shares for 980 euros each, or a 9.2 percent discount to the Friday closing price of 1,079 euros.

The companies said the move will result in a net reduction of Airbus Group’s stake from 46.3 percent to 42.1 percent after taking account of Dassault’s plans to cancel the shares along with a further 1 percent acquired in a separate buyback.

Further the trade follows months of negotiations between Airbus, Dassault and the French government, on whose behalf Airbus holds its stake in an arrangement considered outdated by its management and some investors who have urged it to cash out.

In one or more placements Airbus said it would make its “best efforts” to sell up to a further 10 percent of Dassault Aviation by June 30, 2015.

The companies said Dassault Aviation has pledged to support this by offering a maximum of 980 euros a share for half of each placement, up to a limit of 5 percent of its capital.