PARIS (dpa-AFX) - French lender Societe Generale SA (SCGLF.PK, SCGLY.PK) said that its car leasing division ALD agreed to buy LeasePlan for 4.9 billion euros from a consortium led by TDR Capital. The proposed deal would be made through a combination of shares and cash.
The proposed transaction would create a leading global player in mobility with a total fleet of 3.5 million vehicles, Societe Generale said in a statement.
The deal is expected to be highly accretive for Societe Generale with an improved earnings per share expected at >+5% from 2024.
LeasePlan's shareholders would receive shares representing a pro forma stake of 30.75% in ALD's share capital at closing and 2.0 billion euros in cash. LeasePlan's shareholders would commit to a 12-month lock-up post closing, followed by a 24-month period with orderly sale provision.
Societe Generale intends to remain the long-term majority shareholder of ALD. It would underwrite about 1.3 billion euros rights issue and retain an about 53% stake in ALD's share capital at closing.
The proposed transaction is expected to close by the end of 2022.
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