Bureau Veritas falls sharply in Paris, majority shareholder cashes in by selling 9%

(Il Sole 24 Ore Radiocor) - Bureau Veritas fell on the Paris Stock Exchange after investment firm Wendel sold a 9% stake in the French inspection and certification group for EUR 1.1 billion. The Bureau Veritas share price dropped about three points, but is up about 18% since the beginning of the year. In a statement Wendel explains that the sale yields 'approximately EUR 1.1 billion gross in cash' and that the company remains 'the largest shareholder and controlling shareholder of Bureau Veritas', with a 26.5 per cent stake 'as a result of the transaction'.

The transaction results in a capital gain 'of around EUR 800 million', Wendel emphasises. As part of the transaction, the Lac fund, which is managed by the public bank Bpifrance, acquired 4% of the capital of Bureau Veritas for EUR 500 million and Bureau Veritas bought back 0.8% of its own capital for EUR 100 million, Wendel also points out. With the divestment of the stake in Bureau Veritas, the investment company is, in a way, running for cover after having seen its net profit plummet in 2023, due to the absence of major divestments, as it had been in 2022.

Bureau Veritas meanwhile announced that it had acquired around 3.69 million of its own shares as part of the accelerated sale procedure initiated by Wendel, which involved the sale of around 40.5 million Bureau Veritas shares. The Lac1 fund, managed by Bpifrance, with the purchase of a stake of around 4% has become a new major investor and the Bureau Veritas board of directors will propose the appointment of a Bpifrance representative as an independent director. In accordance with the objective of the buy-back programme, the cancellation of the repurchased shares will be proposed at BV's 22 June meeting.