Implementation of a Capital Increase Reserved for Employees and
Former Employees of the TOTAL Group
TOTAL S.A.
TOTAL S.A. (Paris:FP) (LSE:TTA) (NYSE:TOT) is implementing a capital
increase reserved for employees and former employees of the TOTAL group
(the “Groupâ€), the principal terms of which are described below. Through
this operation, TOTAL S.A. intends to further associate its employees
with the Group’s business and growth. Employee shareholders, within the
meaning of Article L. 225-102 of the French Commercial Code, held 4.9%
of the Company’s share capital as of December 31, 2015.
ISSUER
TOTAL S.A. (the “Companyâ€)
Information related to the Company is available on its website (www.total.com)
and, in particular, in its 2015 Registration Document, the French
version of which was filed with the French Financial Markets Authority
(the “AMFâ€) on March 16, 2016 under the registration number D.16-0145.
The Registration Document is also available free of charge at the head
office of the Company as well as on the Company’s website (www.total.com).
FRAMEWORK OF THE ISSUANCE – PURPOSE OF THE OFFER
The twenty-third resolution of the Combined General Meeting held on May
24, 2016 (the “General Meetingâ€) granted the Company’s Board of
Directors (the “Boardâ€) the authority to decide, within a maximum period
of 26Â months, on one or more capital increases reserved to members of a
company or group savings plan of the Company and French or foreign
affiliated companies pursuant to the provisions of Articles L. 3332-1
and seq., L. 3332-18 and seq. of the French Labor Code and Articles L.
225-129-2, L. 225-129-6 and L. 225-138-1 of the French Commercial Code.
In order to continue the development of the employees’ shareholding
within the Group, and pursuant to the above-mentioned authorization
granted by the General Meeting on May 24, 2016, the Board, at its
meeting on July 27, 2016, decided to carry out a new share capital
increase reserved for employees and former employees of the Group
pursuant to the following conditions.
SECURITIES OFFERED
Pursuant to the decision of the Board at its meeting on July 27, 2016,
the offering will have the following characteristics:
-
Issue type: Ordinary shares issuance by the Company,
without preferential subscription rights, for eligible employees and
retirees of the Company and its French and non-French subsidiaries
that have adhered to the Group’s Shareholder Savings Plan (“PEG-Aâ€)
and that are included in the scope of the offering (see the paragraph
“Companies concerned†below).
-
Maximum number of shares offered – Total amount of the offer: 18 million
shares with a nominal value of €2.50 each, representing a total
nominal amount of €45 million, which is the equivalent of 0.7% of the
Company’s share capital as of October 31, 2016.
-
Share subscription price: The subscription price per share is
the average of the closing prices for the Company’s shares on Euronext
Paris (code ISIN FR0000120271) over the 20 trading sessions preceding
the date of the Chairman and CEO’s decision setting the opening date
for the subscription period (the reference price) reduced by a 20%
discount rounded off to the highest tenth of a euro.
This
subscription price will be definitive and will remain valid
irrespective of upward or downward variations in the Company’s share
price prior to the closing of the subscription period.
-
Description of the newly-issued shares: The newly-issued shares
will be ordinary shares of the Company, with a nominal value of €2.50
each, and of the same category as existing shares. The newly-issued
shares bear immediate dividend rights.
-
Rights attached to the newly-issued shares: The rights attached
to the newly-issued shares, including any restrictions that apply to
them, and the manner of exercising these rights are the same as the
rights attached to the existing shares of the Company, and are
described under “General Information†concerning the Company starting
on page 183 of the 2015 Registration Document.
-
Listing of the newly–issued shares on Euronext Paris: The
listing of the newly-issued shares on Euronext Paris will be requested
from their issuance on the same line as existing shares (ISIN code
FR0000120271). ADRs (American Depositary Receipts) corresponding to
the newly-issued shares may also be listed on the New York Stock
Exchange, with one TOTAL ADR representing one share of the Company.
-
Entity administering the securities service for the Company:
BNP
Paribas Securities Services
Grands Moulins de Pantin
9, rue
du Débarcadère
93500 Pantin, France
TERMS AND CONDITIONS OF SUBSCRIPTION
-
Companies concerned:
This capital increase is open
to eligible employees and retirees of the Company and its French and
non-French subsidiaries in which the Company holds, directly or
indirectly, more than 50% of the voting rights and that have adhered
to the PEG-A (the “eligible subsidiariesâ€), under the condition that
local administrative authorizations have been obtained.
-
Beneficiaries of the reserved issue:
Employees and
former employees eligible to participate (the “beneficiariesâ€) are:
-
employees of the Company or of an eligible subsidiary who have at
least 3 months of employment with Total Group as of the last day of
the subscription period (the “employeesâ€); and
- early
retirees and retirees who, at the time of their departure, were
employees of the Company or one of the eligible subsidiaries, and who
had made at least one payment in the PEG-A before termination of their
employment, and who still have assets invested in the PEG-A, subject
to applicable local regulations and, if applicable, the approval of
the local companies.
Approximately 110,000 beneficiaries
are eligible to take part in this capital increase program.
-
Offers
Two available offers:
- The
Classic Offer will be offered in all countries participating in the
capital increase program reserved for employees. In this offer,
investment of the subscriber will track the price of the Total share;
-
The Capital+ Offer with leverage effect will be offered in France and
in countries where applicable legal and tax constraints permit. In
this offer, the subscriber will benefit from the guarantee of his/her
personal contribution and a minimum return or, if higher, a multiple
of the protected average increase of the Total share;
Regardless
of the offer chosen by the beneficiaries, employees who subscribed to
the offering will benefit from a matching contribution in the form of
a free allotment of additional shares, determined based on the amount
of the personal contribution and within the limit of five free shares
per employee (and within the maximum amount of the offering set by the
Board at its meeting on July 27, 2016). In certain countries,
employees who do not receive the matching contribution could be
eligible to a grant of free conditional shares pursuant to the 24th
resolution of the General Meeting of May 24, 2016. A maximum of
200,000 newly-issued shares could be thus finally delivered to these
beneficiaries after the end of a 5-year vesting period.
-
Indicative calendar:
- Indicative date for the
subscription price: March 15, 2017, subject to the Chairman and CEO’s
decision.
- Indicative dates for the subscription period:
subject to the Chairman and CEO’s decision, the subscription period,
which is a minimum period of 5 stock market days, may be fixed from
March 16, 2017 to March 31, 2017 (included).
The
above-mentioned dates are indicative and may be modified.
-
Subscription and holding methods:
The beneficiaries
who would like to subscribe will have to complete, sign and return to
their company the individual subscription form, or subscribe on the
website by the closing date of the subscription period (tentatively
scheduled for March 31, 2017).
The beneficiaries will have
the opportunity to subscribe via Employee Shareholding funds (FCPEs),
as mentioned below, except in certain countries where the shares will
be directly subscribed.
For the Classic Offer:
-
In France, beneficiaries will be subscribing for shares of Total via
the “TOTAL ACTIONNARIAT FRANCE RELAIS 2017†FCPE .This “Relais†FCPE
will subsequently be absorbed by the “TAF Compartment A†of the “TOTAL
ACTIONNARIAT FRANCE†FCPE, subject to the decision of the Supervisory
Boards of the FCPE and the AMF’s approval.
- In other
countries, beneficiaries will be subscribing for shares of Total via
the “TOTAL ACTIONNARIAT INTERNATIONAL RELAIS 2017†FCPE. This “Relaisâ€
FCPE will subsequently be absorbed by the “TAIC Compartment A†of the
“TOTAL ACTIONNARIAT INTERNATIONAL CAPITALISATION†FCPE, subject to the
decision of the Supervisory Boards of the FCPE and the AMF’s approval.
In
certain countries, beneficiaries will directly subscribe for shares of
the Company or for Total ADRs (for beneficiaries participating in the
offering in the United States).
For the Capital+ Offer with
leverage effect:
- In France, beneficiaries will be
subscribing for shares of TOTAL via the “TOTAL FRANCE CAPITAL + 2017 â€
Compartment of the “TOTAL FRANCE CAPITAL+†FCPE;
- In other
countries, employees of companies established in the countries where
the Capital + offer can be implemented will be subscribing for shares
of Total via the Compartment “TOTAL INTL A CAPITAL+ 2017†or the
Compartment “TOTAL INTL B CAPITAL + 2017†of the “TOTAL INTL CAPITALâ€
FCPE, depending on the structure set for each country.
The
FCPEs created for the needs of this offering were approved by the AMF
on September 23, 2016.
Voting rights attached to shares
subscribed through an FCPE will be exercised by the Supervisory Board
of the relevant FCPE. With regards to the shares subscribed directly
by employees, the voting rights will be exercised by the subscribers
individually.
Pursuant to Article L.3332-10 of the French Labor Code, the amount of
the payments made each year by an employee as part of a Savings Plan
(excluding matching contribution and profit-sharing schemes, i.e., intéressement
and participation) cannot exceed one quarter of the employee’s
gross annual salary.
For the Capital + offer with leverage effect, the limit of one quarter
of the employee’s gross annual salary comprises the additional
contribution provided by the bank.
-
Lock-up period for the units or shares:
Pursuant to
Article L. 3332-25 of the French Labor Code, shares or FCPE units
subscribed in this offering must be held during a lock-up period of
five years, with the exception of certain early release cases provided
for by Articles L. 3324-10 et R. 3324-22 of the French Labor Code. For
beneficiaries who are not French tax residents, the list of early
release cases may be reduced due to legal provisions applicable
locally.
-
Rule for reduction of subscription requests:
The
capital increase will be fulfilled by the total number of shares
subscribed to via the FCPEs referred to above and directly by
employees in certain countries. If the total number described above
exceeds the 18 million shares limit set by the Board of Directors at
its meeting on July 27, 2016, including additional shares of the
matching contribution, the subscriptions will be cut back in the
following manner:
- all subscription commitments up to the
“Subscription Average†(defined as the quotient between the amount set
aside by the Board and the number of subscribers) will be honored in
full; and
- subscriptions commitments that exceed the
Subscription Average will be fulfilled in proportion to the number of
subscription commitments not yet fulfilled with the reduction being
made as follows:
• for subscriptions to both the Classic and Capital + offers, the
reduction will be made to each offer on a pro rata basis
according to the subscription for each of the offers; and
• for each offer, reduction will be made first on the portion of the
offer paid for with salary advances, then on the portion paid for in
cash.
HEDGING OPERATIONS
The implementation of the Capital + leveraged offer could cause the
financial institution that is the counterpart of the swap operation to
conduct hedging operations, in particular from the beginning of the
period of calculation of the reference price and during the entire
period of the offering.
NOTICE
The program, reserved to eligible employees and retirees of the Group,
will be implemented in France as well as in certain foreign countries,
including the United States, where the Total shares offered in the
United States will be registered with the Securities and Exchange
Commission (SEC). Shares and FCPE units offered outside the United
States have not been and will not be registered with the SEC. In
particular, the units of the above-mentioned FCPEs cannot be offered or
sold in the United States of America directly or indirectly (or in its
territories or possessions), or for the benefit of a "U.S. Person", as
defined in American regulations. Persons wishing to subscribe to units
in these FCPEs, will have to certify, when subscribing, that they are
not "U.S. Persons". The definition of "U.S. Person" is available on the
FCPE Management Company's website (www.amundi.com).
This press release is produced for information purposes only and does
not constitute an offer for the sale or the subscription of securities.
Moreover, this press release should not be distributed in the countries
where the offering is subject to approval of the local authorities.
The offer will be issued only in the countries where the local
administrative and regulatory procedures have been implemented (in
particular the registration procedures, notification, granting of
authorizations and/or applicable exemptions and the information or the
consultation of the representatives of the employees).
This press release represents the document required to qualify for the
exemption from the requirement to publish a prospectus as defined in the
Prospectus Directive 2003/71/CE transposed into the internal law of the
Member States of the European Union and, with respect to French law, in
Articles 212-4 (5°) and 212-5 (6°) of the AMF General Regulations and
Article 14 of the AMF instruction n°2005-11 of December 13, 2005.
EMPLOYEE CONTACT
For questions relating to the capital increase program, beneficiaries
may consult the information available on the dedicated intranet site www.totalcapital2017.com
from February 3, 2017 or contact their Human Resources Department.
* * * * *
About Total
Total is a global integrated energy producer and provider, a leading
international oil and gas company, and the world’s second-ranked solar
energy operator with SunPower. Our 96,000 employees are committed to
better energy that is safer, cleaner, more efficient, more innovative
and accessible to as many people as possible. As a responsible corporate
citizen, we focus on ensuring that our operations in more than 130
countries worldwide consistently deliver economic, social and
environmental benefits. total.com
TOTAL S.A.
Capital : 6 321 148 030 €
542 051 180 R.C.S.
Nanterre
total.com
TOTAL S.A.
Mike SANGSTER
Nicolas FUMEX
Kim HOUSEGO
Romain
RICHEMONT
Tel. : + 44 (0)207 719 7962
Fax : + 44 (0)207 719
7959
or
Robert HAMMOND (U.S.)
Tel. : +1 713-483-5070
Fax : +1
713-483-5629
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