The Peugeot family may hold nearly 80% of the capital and almost 89% of the voting rights of its listed holding company, Peugeot Invest, but it is not completely at home there. Friday May 3, the board of directors of Peugeot Invest included on the agenda of the next general meeting (AG), on May 24 – while calling for a vote against – three draft resolutions (out of five) proposed by dissatisfied minorities.
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The French management companies Moneta Asset Management and Sycomore AM, which together hold 6.4% of the holding’s capital, have the feeling that the Peugeots, well versed at the wheel, forget that they are transporting passengers in their investment vehicle . These managers declared joint action to lead this campaign, with the support of Colette Neuville, the founder of the Association for the Defense of Minority Shareholders.
“We have been shareholders of Peugeot Invest for more than fifteen years”, relates Grégoire Uettwiller, manager at Moneta. And to explain having engaged in a dialogue with the company for months. “In 2023, we discovered that – after renaming FFP to Peugeot Invest the previous year – the family had decided to levy a royalty on the use of the Peugeot name. It’s legal, but for us it was a disastrous signal that led us to closely analyze the company’s governance. We deplore a bias against minorities. »
A “penalty”
“FFP has changed its name to increase its visibility and attractiveness. The brand value attached to the Peugeot name is significant, particularly internationally; it allows the company to access the best investment partnersindicates a spokesperson for Peugeot Invest. The brand also represents an essential asset for its controlling shareholder, Etablissements Peugeot Frères, which has deployed significant financial and human resources to preserve it. Therefore, it makes sense that the use of this brand is paid. »
This unexpected royalty is the straw that broke the camel’s back, but the root cause of the impatience of the minorities finds its Source in the famous holding discount. The Stock Exchange, in fact, never values a “piggy bank” at the level of its holdings. It is generally 20%, 30%, even 40% less.
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Taken together, the 7% of Stellantis, 5% of Spie and other shares in private equity funds held by Peugeot Invest are worth 5.9 billion euros. But its market capitalization only reaches 2.7 billion: a “penalty” of 55% which has increased over time, despite the diversification made outside the automobile sector. “Reducing the discount does not seem to be the family’s priority, nor does respecting the rules of good governance. This is why we must debate it at the General Assembly, the only forum where minorities have the right to speak”gets annoyed Mme Neuville.
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