Corporate & other activities, Finance
Paris, December 5, 2012
The Lagardère group welcomes the multi-party agreement(1) that has been signed, clearing the way for EADS’ governance and shareholding structure to be streamlined.
According to this agreement, Lagardère is assured of conditions enhancing the liquidity of its stake (around 7.5% of EADS’ capital), while the interests of all EADS shareholders are protected.
EADS intends to propose a share buyback program which will allow notably Lagardère to sell the majority of its stake.
Description of the share buy-back program
Subject to market conditions and to the approval of the Extraordinary General Meeting, EADS intends to implement, during the first half of 2013, a share buy-back program of up to 15% of the outstanding EADS shares, comprising two equal tranches with the same timing, terms and conditions:
– a first tranche of up to 7.5%, of which up to 5.5% shall be reserved exclusively for Lagardère SCA. The remaining portion of the tranche, if any, and up to 2%, will benefit in priority to SOGEPA and SEPI. If they do not exercise that right, Lagardère SCA can take up to the full amount of the tranche;
– a second tranche of up to 7.5%, which shall be reserved to the public.
Orderly disposal provisions
Lagardère SCA, as the other signatories, has agreed to a lock-up until the earlier of the approval of the new governance by the Extraordinary General Meeting of EADS or 31 July 2013.
At the expiration of the lock-up period, Lagardère SCA and Daimler AG will be free to dispose of the EADS shares they would still own (after the share buy-back program, if any) and have agreed to certain provisions organizing an orderly process to that purpose.
At this key juncture in EADS’ development, Lagardère expresses its whole confidence in the management team and employees of Europe’s leading aerospace and defence group. Together, they will be able to face with equanimity the new strategic and industrial challenges that lie ahead.
(1) See the press release entitled “EADS Governance and Shareholding Structure Receives Far-Reaching Overhaul” published today by EADS.
Lagardère is a world-class pure-play media group (Book and e-Publishing; Press, Audiovisual, Digital and Advertising Sales Brokerage; Travel Retail and Distribution; Sport Industry and Entertainment).
With a holding of around 7.5%, Lagardère jointly controls EADS.
Lagardère shares are listed on Euronext Paris.
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