French banking major Societe Generale SA (EPA:GLE), or SocGen, has signed a final accord to sell its majority holding in domestic investment firm Salvepar SA (EPA:SY) to fund manager The Tikehau Group, the parties in the deal said on Monday.
Under the terms of the agreement, Tikehau Participations & Investissements, a new investment company established by The Tikehau Group, will purchase SocGen’s 51.42% stake of the capital and voting rights in Salvepar for EUR86.24 (USD112.18) per share in the coming days. It will subsequently make, upon the receipt of green light from the French stock market regulator, a takeover bid on the remainder of the target at the same price, without requesting a squeeze-out after the public offer.
The move is part of SocGen’s efforts to speed up its rejig, shifting its focus off non-strategic assets. The French bank does not expect the deal to affect ratios and results materially.
For Tikehau, the transaction is seen as an important development milestone, which cements its presence in the area of capital investment, Antoine Flamarion, chairman of the Tikehau Group, said. It demonstrates its intention to grow its capital development and equity investment operations alongside its third-party asset management activity in the credit markets.
Salvepar engages in acquisition of interests of between 5% and 20% primarily in emerging firms. The company is headquartered in Puteaux La Defense, France.