Qatar Sovereign Wealth Fund to Sell $425 Million Vinci Stake

  • Fund to sell as many as 6.5 million shares in French company
  • Qatar will retain 3.9 percent Vinci stake after transaction

Qatar Investment Authority, which has investments in companies ranging from Glencore Plc to Total SA, plans to sell a stake in Vinci SA valued at as much as 380 million euros ($425 million).

The sovereign wealth fund is selling as many as 6.46 million shares, or a 1.1 percent stake, in the French construction company via a private placement arranged by Societe Generale SA, according to a statement. The fund has held a stake in Vinci for over five years and will retain about 3.9 percent after the transaction.

The Qatari fund is the ninth largest sovereign wealth fund in the world with assets of over $250 billion, according to the Sovereign Wealth Fund Institute. Last month it announced plans to invest $35 billion in the U.S. during the next five years after opening an office in New York. It’s also investing in a commercial real estate investment trust run by a subsidiary of Leon Black’s Apollo Global Management LLC.

The last publicly announced divestment by the Qatari fund was the sale of two London office buildings by a venture between QIA subsidiary Qatari Diar Real Estate Investment Co. and Canary Wharf Group worth more than 550 million pounds ($857 million) in August. The sale to Almacantar SA was the largest ever in London’s South Bank district. Qatar Holding, another unit of QIA, and other investors in Miramax have hired Morgan Stanley and Qatari investment bank QInvest to find a buyer for the studio, a person with knowledge of the matter told Bloomberg last month.

The sale of Vinci shares is “part of the routine portfolio management activities undertaken by QIA from time to time,” according to the statement. “QIA continues to believe in the management and long-term prospects for Vinci.”

Vinci closed 4.1 percent higher at 58.77 euros yesterday in Paris. The shares have gained 29 percent this year.

Glencore fell for the first time in three days in London trading on Tuesday, after posting the biggest ever advance on Monday. The stock has more than recovered losses since its record 29 percent plunge a week ago.

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