Societe Generale: Launch of ALD rights issue
Launch of ALD c.€1.2 billion capital increase with shareholders’ preferential subscription rights in connection with the contemplated acquisition of LeasePlan
ALD, a subsidiary of Societe Generale, announced today the launch of a capital increase with preferential subscription rights for shareholders (the “Rights Issue”) for an amount of approximately €1.2 billion.
The principle of this Rights Issue was initially announced on January 6th, 2022 in connection with the announcement of ALD’s plan to acquire LeasePlan and marks a major milestone in the creation of a leading global sustainable mobility player, benefiting from highly complementary expertise and synergies.
Societe Generale, which currently holds 79.8% of ALD’s share capital, is committed to remaining a long-term majority shareholder of ALD with a targeted ownership corresponding to c. 53% of the new group’s share capital upon closing of the LeasePlan acquisition. In this regard, Societe Generale will participate in the Rights Issue for a total subscription amount of approximately €803 million. Moreover, Societe Generale has undertaken to fully underwrite the capital increase and has also committed not to sell its shares for a period ending 40 months after the completion of the LeasePlan acquisition and to a lock-up starting on the date of signing of the placement agency agreement relating to the Rights Issue and ending 180 calendar days following the settlement-delivery of the Rights Issue (subject to certain exceptions).
The impact of this acquisition on the Societe Generale Group's CET1 capital ratio is expected to be around 40 basis points at the closing date of the transaction. Societe Generale would benefit from a ROTE uplift between 70 and 80 basis points in 2024.
For more information on the terms and conditions of the capital increase, please consult the capital increase dedicated section on ALD’s institutional website:
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With respect to the Member States of the European Economic Area (other than France) and the United Kingdom (each a “Relevant State”), no action has been undertaken or will be undertaken to make an offer to the public of the securities referred to herein requiring a publication of a prospectus in any Relevant State. As a result, the securities may and will be offered in any Relevant State only (i) to qualified investors within the meaning of the Prospectus Regulation, for any investor in a Member State of the European Economic Area, or Regulation (EU) 2017/1129 as part of national law under the European Union (Withdrawal) Act 2018 (the “UK Prospectus Regulation”), for any investor in the United Kingdom, (ii) to fewer than 150 individuals or legal entities (other than qualified investors as defined in the Prospectus Regulation or the UK Prospectus Regulation, as the case may be), or (iii) in accordance with the exemptions set forth in Article 1 (4) of the Prospectus Regulation or under any other circumstances which do not require the publication by ALD of a prospectus pursuant to Article 3 of the Prospectus Regulation and/or to applicable regulations of that Relevant State.
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 Assuming the full exercise of the warrants granted to Leaseplan’s shareholders, c. 51% of the new group’s share capital upon closing of the LeasePlan acquisition
 Computed based on 2024 net income group share post AT1 cost consensus estimate (Factset end 2021), including fully phased run rate synergies and excluding restructuring costs, divided by average tangible shareholders’ equity