Michelin offers employees discounted share ownership plan

Group Michelin has launched an employee share-ownership plan that provides Michelin employees the opportunity to subscribe to a rights issue reserved for them under preferential terms.

Michelin employees in 47 countries where the firm is active can purchase shares in the company at a subscription price of €76.37 ($84.85 at prevailing exchange rates the week of Sept. 14), which is considered a 20% discount from the average of opening prices quoted for Michelin shares on Euronext Paris over 20 trading days prior to Sept. 16, the launch date.

Michelin has set aside 1.75 million shares for this offer, which represent nearly $150 million in value.Michelin's executive leadership decided to make this offer in order to "more deeply involve" employees in the firm's growth and development "through a dynamic relationship built on mutual commitments." The rights issue was authorized at annual shareholders meeting on June 23.Employees who acquire their shares directly may exercise their voting rights individually at Michelin shareholders meetings, the company said.

Michelin made a similar 20% discount offer four years ago, enacting a capital share increase totaling nearly $410 million to cover the 3.5 million new shares it issued.

Employees hold 2.26% of the 178.6 million shares in circulation, according to Michelin data. Its market capitalization stands at $18.3 billion.

Employees in the U.S., Canada and Mexico are eligible.