French billionaire Bernard Arnault sold his stake in multinational retailer "Carrefour" after a potential acquisition by Canadian firm Couche-Tard earlier this year collapsed.
Books director Societe Generale said Wednesday that Arnault had acquired a 5.7% stake through his holding company Financiere Agache, which has raised 724 million euros ($854 million) by selling shares in the market in an accelerated record-building process.
Meantime, Carrefour shares fell by 4.48% in today's trading.
Agache's stake was sold at €16 per share, after Arnault, along with Colony Capital and Axon Capital, acquired 9.8% in 2007 at an average price of €47 per share.
Sources said Agache has not lost out financially over the years, in part due to pidends, although analysts at Brian Garnier estimated he would leave with a loss.
Arnault was one of the three major shareholders, along with the Moulin family and Brazilian businessman Abilio dos Santos Diniz.
"His departure comes as Carrefour's reforms under the stewardship of Chairman and CEO Alexandre Bombard are yielding results," Reuters wrote.
"Over the past four years, Carrefour has made an impressive recovery under the management of Alexandre Bompard," Arnault said in a statement. “After 14 years in… we have decided to continue redirecting our investments.”
Carrefour renewed Bompard's three-year term at the helm in May. He drove cost reductions and e-commerce drives to increase sales and profits.
Sources at the time said Arnault, France's richest man, was supportive of Bompard in January when the CEO was in talks with Canada's Couche-Tard about a takeover deal. Couche-Tard eventually dropped his $20 billion bid for Carrefour after facing opposition from the French government.
"Bompard has since acquired Grupo BIG, valued at around $1.3 billion, and has confirmed Carrefour can survive on its own," Reuters added.
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