(MENAFN) French construction and concession company Vinci SA said that it will acquire France's Cegelec from Qatari Diar Real Estate Investment, in a deal valued at 1.69 billion, Reuters reported.
Qatari Diar will bring its electric engineering unit, Cegelec, to Vinci in exchange for a stake in the French group's capital, making the Qatar company the largest shareholder after Vinci's employees fund, Vinci said, without disclosing figures.
Vinci's employees owned a total of 8.2 percent of the company's capital as of Dec. 31, 2008. The transaction, on the basis of 31.5 million Vinci shares for 100 percent of Cegelec, would be earnings-enhancing from 2010, Vinci said.
Qatari Diar would sign a stable shareholding agreement that would stipulate that a director proposed by Qatari Diar would be appointed to the Vinci Board - subject to approval from the company's shareholders - and would also be a member of the strategy and investment committee, Vinci said.
The agreement would also stipulate that Qatari Diar is to keep a stake in Vinci that could range between 5 percent and 8 percent for three years.
This transaction, exclusively carried out by an exchange of shares, would be neutral on Vinci's debt ratios, as Vinci would take over only Cegelec's operating debt.