CLERMONT-FERRAND, France—Michelin launched an employee share-ownership plan that provides its workers with the opportunity to subscribe to a rights issue reserved for them under preferential terms.
Workers in the 47 countries where the tire maker is active can purchase shares in the company at a subscription price of $84.85, which is considered a 20 percent discount from the average of opening prices quoted for Michelin shares on Euronext Paris throughout 20 trading days prior to the Sept. 16 launch date.
In all, 1.75 million shares, valued at $150 million, were set aside for this offer.
According to company officials, offering these shares allows Michelin employees to be more deeply involved 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.
The tire maker made a similar 20 percent 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 percent 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.
Other countries where the offer is open include: Argentina, Australia, Austria, Belgium, Brazil, Cameroon, Chile, China (including Hong Kong and Taiwan), Colombia, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, India, Indonesia, Italy, Japan, Luxembourg, Malaysia, Netherlands, Nigeria, Norway, Peru, Poland, Portugal, Republic of Ireland, Romania, Russia, Serbia, Singapore, Slovakia, South Africa, South Korea, Spain, Sri Lanka, Sweden, Switzerland, Thailand, Turkey, United Arab Emirates and the United Kingdom.