French flags first candidate for privatization through stock market listing

The government has announced plans to sell 10 billion euros ($12.28 billion) worth of stakes in state-owned companies to raise money...

THE French administration has kicked off a wave of privatization after authorities announced plans to offload 50 percent stake of a lottery company to the public, Reuters reports.

It was announced that the Paris is planning to sell a stake of around 50 percent in national lottery company Francaise des Jeux (FDJ) via a stock market listing.

The government has announced plans to sell 10 billion euros ($12.28 billion) worth of stakes in state-owned companies to raise money for a new fund to finance innovation, an election pledge of President Emmanuel Macron.

The lottery company has long been flagged as one of the first candidates for a privatization.

Investment bank BNP Paribas as well as law firm Weil, Gotshal & Manges LLP were mandated by France’s state holding company APE to pave the way for a sale of FDJ, which is 72 percent owned by the administration.

The state had finally opted to open the sale up to the public through a stock market flotation, in an overhaul of the FDJ that should be finalised no later than early 2019, the Journal du Dimanche (JDD) reported, citing sources.

According to the journal , the country would retain a stake of close to 25 percent in the company, Europe’s second-biggest lottery after Italy’s Lottomatica, while a private investor hailing from the gaming or media sector could also take a slice of the capital.