Shares in French electrical materials supplier Rexel fall 3.9 percent, featuring among the top losers of France's broad SBF120 index and breaking out of a strong 2-1/2-month upward channel, after Ray Investment sells a chunk of its stake in the company at a discount.
In a statement late on Wednesday, Ray Investment said it planned to reduce its majority stake in the group through an accelerated bookbuilding to institutional investors.
Traders said on Thursday morning the private equity group has placed 30 million shares, or 11.2 percent of Rexel, at 15.75 euros a share, a 4.8 percent discount from Wednesday's closing price of 16.55 euros.
"This announcement comes as no surprise as the CFO already indicated that 15 euros a share is good level to proceed to first increase of float. This operation is a first step in the process of disposals by funds, which will continue in the coming quarters," a Paris-based trader says.
Ray, owned by funds controlled by Clayton, Dubilier & Rice, Eurazeo , BAML Capital Partners and Caisse de Depot et Placement du Quebec, retains a stake of about 60 percent in Rexel after the placing, while the company's freefloat will increase to 38 percent from 26.8 percent.
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