France has begun selling its remaining ownership stakes in companies as part of a planned collection of 10 billion euros to finance innovation.
President Emmanuel Macron promised during his election campaign to establish a fund for financing innovation, and the first payment – just over 1.5 billion euros – was secured on Tuesday afternoon by selling 4.5 percent of the shares in the energy company Engie.
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“The shares were sold at a good time for the state as the owner,” stated Economy Minister Bruno Le Maire in a statement.
“This is the first phase of a plan that envisions the sale of assets worth a total of 10 billion euros,” added the minister.
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Some analysts warn that the state did not get a good price for Engie shares, as they were sold for less than 13.98 euros, which was the share price at the time of yesterday’s market close.
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“Engie shares are worth much more; the timing for the sale was not the best,” claims Christian Saint-Etienne from the University of Paris-Dauphine. “We are witnessing a fire sale of family silver,” he warns.
The sale reduced the state’s stake in Engie to 24.1 percent, and since, according to French laws, long-term investors have double voting rights compared to their ownership stake, this means that the state’s share is still significantly above the prescribed threshold of 33 percent and has maintained its status as the largest investor.
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The government has not disclosed the names of other companies in which it also plans to sell stakes. President Macron has indicated, however, that the state does not necessarily have to retain its ownership stake in the telecommunications company Orange.
Analysts estimate that Paris could also sell stakes in the automotive company Renault, as well as in the airport operator ADP and the gambling operator FDJ.
