French optical equipment maker Essilor said it would ask shareholders to approve a ten-for-one stock split after agreeing details of Saint-Gobain“s sale of its 32% stake in Essilor.
Around 22% of Es…
French optical equipment maker Essilor said it would ask shareholders to approve a ten-for-one stock split after agreeing details of Saint-Gobain“s sale of its 32% stake in Essilor. Around 22% of Essilor“s capital held by Saint-Gobain will be sold on the stock market. Essilor will buy back at the same price up to the remaining 10% of its capital from Saint-Gobain. The companies said the simultaneous transactions would be carried out before the end of the year, market conditions permitting. Essilor said shareholders would be asked at an extraordinary meeting before the end of the year to approve the cancellation of the shares bought back from Saint-Gobain. The company said the cancellation would increase earnings per share and significantly enhance return on equity. Shareholders will also be asked to approve the conversion of the 56,418 outstanding non-voting preferred shares into common shares on a one-for-one basis and the ten-for-one stock split. French glassmaker Saint-Gobain said in May it was planning to sell its stake of almost 32% in Essilor and to use the proceeds to buy back its own shares.