Lagardère makes ‘peace agreement’ between shareholders
In France, Hachette Livre parent company Lagardère has confirmed the group’s transformation into a joint-stock company as part of a ‘peace agreement’ to end all legal disputes between shareholders, reports the Bookseller.
As reported earlier this week, the move involves general and managing partner Arnaud Lagardère, who had veto power on most company issues despite owning just a 7 percent stake, relinquishing full management control of the company in exchange for an additional 10 million company shares, which are yet to be valued.
The agreement rules out a break-up of the group in the immediate future, with a ‘reaffirmation of the integrity of the group, focused on its two pillars, Lagardère Publishing (Hachette Livre) and Lagardère Travel Retail’. However, a sale of assets at some future point is not ruled out. Instead, any publishing divestiture worth more than €50 million (A$78m) will require approval from at least seven of the 11 members of the incoming board of directors. Lagardère will also remain in his post for six years.
With the additional 10 million shares, Lagardère will hold 14% of the company, behind Vivendi—the owner of Editis, the second largest French publisher—which will hold 18%.
The agreement will have to be authorised by the French financial regulator the AMF and approved by the Lagardère annual shareholders meeting on 30 June.
Category: International news