Michelin launches BIB Action 2020 employee share ownership plan

Michelin has introduced an employee share ownership plan. Bib Action, as the plan is known, gives Michelin group employees the opportunity to subscribe to a rights issue reserved for them under preferential terms – namely at a discount. Michelin’s managing chairman decided to carry out the rights issue in order to “more deeply involve employees in the group’s growth and development through a dynamic relationship built on mutual commitments”. The subscription period for the five-year minimum ownership share scheme will run from 16 September to 1 October 2020. The rights issue was authorized by the Annual Shareholders Meeting of 23 June 2020 in the 22nd resolution.

On 14 September 2020 the subscription price was set at 76.37 euros, which equates to 80 per cent of the average opening price of Michelin shares on Euronext Paris over the 20 days, minus a 20 per cent discount. The company’s capital will be increased by up to a maximum of 1,750,000 shares.

The new shares will be subscribed directly by employees, except in Hungary where they will be subscribed through FCPE Bib Invest Relais 2020, a corporate mutual fund approved on 28 April 2020 under AMF code FCE20200057. FCPE Bib Invest Relais 2020 will be merged into FCPE Bib Invest following the rights issue.

All Michelin shares acquired either directly or via FCPE Bib Invest Relais 2020 are subject to a five-year lock-up period starting from the date of the rights issue, except in the case of an early release provided for in Article R.3324-22 of the French Labor Code and accepted in the subscriber’s country. The rights issue is scheduled for 12 November 2020 and all Employees who subscribe to the offering must therefore hold their shares or FCPE units until 12 November 2025.

The 2020 employee share ownership plan is open to Employees in the following countries: Argentina, Australia, Austria, Belgium, Brazil, Cameroon, Canada, Chile, China (including Hong Kong and Taiwan), Colombia, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, India, Indonesia, Italy, Japan, Luxembourg, Malaysia, Mexico, 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, United Kingdom and United States.