French government divests Safran stake to boost national economy

By VCPOST Staff Reporter

Nov 15, 2013 02:22 AM EST

The French government announced the sale of 3.5% of its stake in jet engine manufacturer Safran. The stake was valued at EUR937 million (USD1.3 billion). This was according to a report published by BBC News. Pierre Moscovici, Finance Minister of France, said the proceeds will be used for new investments. These investments will be designed to give the country's economy a lift, the report said.

With a stake of over 22%, the government will still be the biggest shareholder of Safran, said the report.

France also sold its stakes in airport authority ADP and aerospace giant EADS. The proceeds from the recent sales are presently being used to finance EUR12 billion of state investment. The government hopes to boost growth. It also aims to decrease unemployment rate in the country, the report explained.

Safran is one of the top industrial firms in France. The company crafts engines for airliners, helicopters, missiles, and combat aircrafts. The firm also manufactures electronics for the defense and security industry, BBC News reported.

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