May 21 (Renewables Now) - Jacques Veyrat, the controlling shareholder of Neoen SA (EPA:NEOEN), could sell the French renewable energy projects developer to Engie SA (EPA:ENGI) in order to get a minority stake in the electric utility, BFM Business reports.
The business news channel says on its website that the French government, which has a 24% stake in Engie and is looking to exit the company, had contacted the entourage of the businessman to discuss the possibility.
According to the report, Veyrat could get a stake of up to 3% in Engie if he transfers control over Neoen to the utility. Then, that ownership interest in Engie could easily grow to 6%.
However, Neoen’s business plan envisions doubling the size of its solar and wind portfolio to 5 GW by 2021 and boosting its value on the stock market to between EUR 3 billion (USD 3.35bn) and EUR 4 billion, the report says. At that point, a 50% stake in the renewables developer could be exchanged for a 6% to 7% interest in Engie, which could then be raised to almost 10%, BFM Business says.
(EUR 1.0 = USD 1.116)