The largest shareholder in Rubis SCA said the company’s proposal to grant 12.7 million new shares to its general partners was “too generous” and he would probably vote against the plan if it isn’t changed. French entrepreneur Patrick Molis, who owns 9.4% of Rubis, said about 10% would be adequate. The French fuel retailer announced a plan to convert itself to a joint stock company to become more attractive to investors and gain flexibility for growth or acquisitions.
The new shares represent 12.3% of current share capital and would compensate general partners for dropping specific rights. Molis criticized governance and Rubis’s foray into solar power, and resigned from the supervisory board in August. He supports the joint-stock conversion but says he hasn’t been consulted on its modalities.
Rubis general partners Jacques Riou, Gilles Gobin, and Clarisse Gobin-Swiecznik own just over 2% of shares but have broad sway due to the partnership structure. They are also jointly liable for company debts. Conversion marks a step in the succession process initiated by Riou and Gobin.
The proposal needs two-thirds shareholder approval at an extraordinary meeting. Shareholders will vote on Dec. 9, pending confirmation from the French financial market authority that no mandatory tender offer is required.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing