PARIS: The French state will spend as much as 46 million euros ($51.5 million) to increase its stake in Air France-KLM Group to maintain its influence in the airline.
The state will buy up to 5.1 million shares of Air France-KLM, or 1.7 percent of the company’s shareholding, raising its stake from the current 15.88 percent, according to a statement from the Finance and Economy ministries in Paris.
The government wants to ensure it wins a shareholder vote at the May 21 general assembly that will determine whether any investor who owns the stock for more than two years can get double voting rights. The state backs the shift, allowed in French law since 2014, which will give it and other long-term shareholders more power.
Friday’s move to safeguard extra voting rights is the state’s second such action, after it acquired extra shares in carmaker Renault SA last month.
The French state is Air France-KLM’s biggest shareholder. Its 15.88 percent stake gives it 16.1 percent of the voting rights, according to the Economy Ministry.
“The law is helping to have a long-term shareholding and that is in line with the company’s strategy,” an Air France-KLM spokesperson said on Friday.
The shares rose 3.8 percent 8.10 euros apiece at 9:42 a.m.
