Wendel Sells 5.3% of Saint-Gobain -- Update

(Adds detail about company's capital in third paragraph.)

By William Horobin

PARIS--French investment firm Wendel (MF.FR) said Wednesday it has sold a 5.3% stake in construction materials group Compagnie de Saint-Gobain SA (SGO.FR) for around 1.2 billion euros ($1.38 billion).

"This transaction significantly increases our flexibility to seize high potential investment opportunities," Wendel Chairman Frederic Lemoine said.

As part of the transaction, Saint-Gobain bought back 10 million of the 30 million shares sold by Wendel, which represents about 1.8% of the company's capital. After Saint-Gobain cancels those shares, Wendel will hold around 6.4% of Saint-Gobain and 11.1% of the voting rights in the company. Before the transaction, Wendel had 11.7% of Saint-Gobain shares capital and 19.3% of its voting rights.

"Wendel remains a very significant shareholder in Saint-Gobain," Mr. Lemoine said.

The sale of Saint-Gobain shares will result in an accounting loss of approximately EUR200 million for Wendel.

Write to William Horobin at [e-mail]

(END) Dow Jones Newswires

May 04, 2016 03:14 ET (07:14 GMT)

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