France to Sell 0.9% of Engie Shares

    By Jason Chow 
 

PARIS--The French government said Tuesday it would reduce its stake in energy group Engie SA, previously known as GDF Suez SA, in a sale that represents 0.9% of the company's total shares.

Finance Minister Michel Sapin and Economy Minister Emmanuel Macron said the state has hired banks to carry out the sale of just over 22 million shares in the company over the next three months. Based on Monday's closing price, the shares are worth EUR372 million.

The French state, an active investor in many of France's largest companies including car maker Renault SA and airline group Air France-KLM, said it currently owns 809.4 million shares in Engie, representing 33.2% of the total shares. The government remains Engie's largest shareholder.

Because of the new Florange Law, France is able to sell its stake but retain significant voting rights. The law dictates that those who own shares for longer than two years are allowed double voting rights.

"The sale is part of the state's active management policy, which allows it to preserve the wealth and strategic interests of the state," the government said. Proceeds of the sale will be used to pay down government debt and reinvest into "growth sectors" of the French economy, the state said.

At 0759 GMT Engie was down 1.2% at EUR16.68.

Write to Jason Chow at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires