French state holdings agency sells PSA stake to sovereign fund

PARIS (Reuters) - France's main state holdings agency sold its 12.7 percent stake in carmaker PSA Group to the country's Bpifrance sovereign wealth fund, the two government bodies announced on Monday.

(Reuters)

The Agence des Participations de l'Etat (APE) sold its PSA shares for 1.92 billion euros ($2.1 billion), more than twice the 800 million it paid for the holding in a 2014 bailout for the maker of Peugeot and Citroen cars.

The transaction will take effect after PSA's annual shareholder meeting on May 10, which is expected to approve the French carmaker's acquisition of Opel from General Motors, announced earlier this month.

(Reporting by Laurence Frost; Editing by Bate Felix)