France has stake in STX Europes French yards

STX Europe and the French government have agreed that the French state becomes a 33.34% shareholder in STX France and its shipyards in Saint-Nazaire and Lorient. The combined ownership of STX and the French state will expand the strategic opportunities for one of the few sophisticated large capacity shipyards in Europe.

STX Europe is today one of the world’s leading builders of cruise ships and ferries, with a market share of 35 – 40%.

The French state’s initial payment will be supplemented, based on STX France’s performance over the period 2009-2011, by an earn out mechanism whereby the French state will make a direct payment of up to Euros 83,3 million to STX Europe. If the parties decide to increase the capitalization of STX France, this amount can be reinvested in STX France and supplemented by the French state, so that STX France will receive a total amount of up to Euros 125 million. The total equity injection would then be Euro 235 million, with an implied value of STX France of Euro 470 million.

Based on the new ownership model, STX France aims to expand the business within today’s primary market for both cruise ships and ferries. The yards will also explore opportunities in other segments where STX Europe already has solid experience and skills, for example for ships to the navy or for very large and advanced offshore vessels.

STX Europe will continue to be the controlling shareholder of STX France with just above 50%, while the French Republic will own approximately 33.34%. Alstom Holdings SA, today a 25% shareholder of STX France, will own the remaining shares, approximately 16%.