They agree with the applied historical epithet PSA’s latest financial results. Six years after the eventual rescue of the automaker then under water, members of the Peugeot bicentennial dynasty can only congratulate the return to grace of the group led by Carlos Tavares. “The Opel operation is an exceptional success, we did not think that the recovery could be so fast,” judge Robert Peugeot, the CEO FFP, the holding company family.
While PSA and Carlos Tavares say they are urbi and orbi on the lookout for any new opportunity , the doubist clique declares itself ready to work on a merger or acquisition. “We supported the Opel project from the start. If another opportunity arises, we will not stop. Carlos knows it, “says Robert Peugeot.
Alignment of the planets
The latter is eager to “ensure the continuation and success of the company.” It is always necessary “an alignment of the planets”, he says, so that a great maneuver is concretized and today “nothing” has not arrived until his office. If so, FFP would be willing to invest in capital in reasonable proportions.
The decline in markets and the change in accounting standards have affected FFP’s 2018 results. The investment company published a net profit down 48% to 115 million euros. Thenet asset revalued (ANR), the best indicator of the value of holding companies’ holdings, fell by 2.6% at the end of 2018, to 150.3 euros per share. However, since January 2019, FFP has erased its losses, with all of its listed investments (Safran, Orpea, PSA, SEB, etc.) having all increased by more than 10% on the stock market. In five years, the ANR of FFP has doubled and the holding company is at the head of more than 600 million euros to invest.
Among the targets or potential allies, we would of course find Jaguar Land Rover and General Motors, but especially Fiat Chrysler, speculate observers. Moreover, PSA and FCA are discussing at the highest level of the future of their association in commercial vehicles – or even other topics of partnerships. “With them, as with others, the planets could be aligned,” says Robert Peugeot.
Between FFP and EPF, the other family entity, the Peugeot hold 12.23% of the capital of the group, as the Chinese Dongfeng and bpifrance. After having recovered the actions of the Agency of the participations of the State at the end of March 2017 , the public investment bank will soon have double voting rights, like the two other shareholders of PSA.
The trio is bound until 2024 by a “standstill” clause preventing one from rising to capital without the agreement of the other two and the builder, and all three have two seats each on the board (they would lose one if they fall below the threshold of 7% of capital, knowing that they can unilaterally decide to reduce their participation).
Power of influence
On the occasion of the annual results of FFP, Robert Peugeot was keen to recall the ascendancy demanded by the family in any shareholding. “We invest in the minority in the long term but we have a certain power of influence given our industrial past,” says the CEO of the holding, which now has “600 million euros immediately available.” FFP’s representative on Safran’s board, he also welcomed the merger with Zodiac. “The integration is going well. I do not hear any more activist ICT, “he notes.
Very active in unlisted – FFP invested in funds like Astorg , FAPI, Keensight, and could reinvest $ 80 million with the powerful Reimann family, which controls the world’s number two coffee, after 130 million last year – the holding however remains cautious in 2019. “There is Uncertainty everywhere, it forces us to be very attentive to what we are watching. We do not prioritize, in particular, the listed companies, insists Robert Peugeot. But caution does not mean passivity, “he smiles. Which is true for Peugeot, and for PSA.