Societe Generale's ALD taps shareholders to fund LeasePlan buy
Nov 29 (Reuters) - Societe Generale's SOGN.PA ALD ALDA.PA car leasing unit on Tuesday launched a capital increase of around 1.2 billion euros ($1.3 billion) to finance its purchase of Dutch rival LeasePlan.
The French car leasing company announced the 4.9 billion euro deal with LeasePlan in January, a move that will give it ownership of the biggest electric vehicle fleet in Europe.
ALD said the price of the shares in its rights issue would be 7.50 euros, with a subscription period from Dec. 2 to Dec. 13 inclusive, adding that it will be available in France only.
Societe Generale, which holds 79.8% of ALD's share capital, intends to exercise approximately 268 million rights, which give it the right to subscribe to around 107 million new shares for about 803 million euros, France's third-biggest bank said.
It will hold approximately 75.9% of ALD's share capital after the settlement of the rights issue, it added.
Societe Generale said in a separate statement that it is committed to remaining a long-term majority shareholder of ALD – corresponding to 53% of the new group's share capital – and to not sell its shares for a period of 40 months after the completion of the LeasePlan acquisition.
"The impact of this acquisition on the Societe Generale Group's CET-1 capital ratio is expected to be around 40 basis points at the closing date of the transaction," the bank said.
"Societe Generale would benefit from a ROTE (return on tangible equity) uplift between 70 and 80 basis points in 2024." ($1 = 0.9629 euros)
Reporting by Lina Golovnya; additional reporting by Diana Mandiá; Editing by Tom Hogue, Savio D'Souza and Alexander Smith
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