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(Adds company comment and information on how much money the companies could be raising starting in the second paragraph.)
PARIS -(Dow Jones)- U.S. investment group Kohlberg Kravis Roberts & Co. and French investment company Wendel SA (MF.FR) said Monday the two are selling 30 million shares, or 11%, of the capital of French electric equipment group Legrand SA (LR.FR) to institutional investors.
The companies didn't say how much money they are raising via the sale. But on the basis of Legrand's closing price of EUR19.90 Monday, Wendel and KKR should garner around EUR597 million if all 30 million shares are placed.
A Wendel spokeswoman said KKR and Wendel will each account for 5.5% of the combined stake sold. After the transaction, the companies' combined stake will be about 50% directly and indirectly of Legrand's capital, with about 65% of the voting rights, the companies said in a joint statement.
The move has come as a mild surprise since Wendel Chief Executive Frederic Lemoine pledged earlier this year that he would neither sell nor buy any new assets in this year.
The Wendel spokeswoman said the transaction will increase Wendel's financial flexibility. "This gives us a little more leeway to pay down our debt", she told Dow Jones Newswires. In the past few months, Wendel has made several deals to lengthen the maturity of its debt.
In their statement, KKR and Wendel said they intend to remain active and strongly committed core shareholders of Legrand, with double voting rights and a majority of Legrand's board.
"The transaction is part of KKR's and Wendel's strategy to actively manage their investments and is also intended to significantly enhance Legrand's stock liquidity due to the resulting increase of its free float by approximately 34%," the companies said.
KKR and Wendel said they have agreed on a six-month lockup period, subject to certain exceptions. They said bookbuilding begins immediately and is managed by Goldman Sachs International as sole bookrunner.
"KKR and Wendel plan to continue to actively support the development of Legrand, as they have done since 2002 and since Legrand's (initial public offering) in 2006," the companies said, adding they "reiterate their confidence in Legrand and remain equally enthusiastic about Legrand's robust business model and growth prospects."
-By A.H. Mooradian and Nathalie Boschat, Dow Jones Newswires; +33-1-4017-1740; art.mooradian@dowjones.com.
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Publié le 23 novembre 2009 Copyright © 2009 Dowjones

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