GBL: EUR1 Billion Net Proceed From GDF Suez Stake Disposal

Belgian holding Groupe Bruxelles Lambert (GBLB.BT) Tuesday said it successfully sold a 2.7% stake in French power group GDF Suez SA's (GSZ.FR) capital, or 65 million shares, for a net proceed slightly above one billion euros ($x.x billion)

MAIN FACTS:

- Following this transaction, GBL has a net cash position (excluding treasury shares) of EUR0.7 billion. Total dividends expected in 2013 on the shares sold amounted before the transaction to EUR98 million of which EUR44 million was already received in April.

- The consolidated capital gain resulting from the disposal shall amount approximately to EUR80 million and compensates the impairment of EUR65 million recorded on the whole investment in the first quarter of 2013.

- Following the disposal, GBL retains 2.4% of the share capital of GDF Suez, most of which underlies the EUR1 billion exchangeable bond issued in January 2013.

- "GBL believes in the outlook of GDF Suez and fully supports its transformation and the strategic priorities announced by the group, in which it retains a significant stake that represents for GBL an important participation. GBL reiterates its full confidence in Gérard Mestrallet and his team and will continue to actively support the company's strategy based on growth and value creation," GBL's chief executive Albert Frère said in a statement.

- GBL aims at building a portfolio of investments focusing on a small number of industrial companies that are leaders in their markets. The portfolio is intended to evolve over time as companies mature and market opportunities arise. GBL invests and disinvests according to its objectives of value creation and maintenance of a solid financial structure and confirms its policy of continuous dividend growth, M. Frère also said.

- The sale of 2.7% of the share capital of GDF Suez is consistent with the defined strategy to optimize the portfolio balance among sectors and the financial flexibility. The successful transactions completed over the last year helped GBL return to a positive net cash position.

- GBL said it intends to redeploy its positive cash position by making selective and diversified investments in companieswhere GBL will be in a position to exercise its role of long term strategic professional shareholder.

- Write to Geraldine Amiel at [e-mail]; Follow on Twitter @GeraldineAmiel;

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