Paris (AFP)

16,50 to 19,90 euros the action: it is the price that will have to pay to participate in the privatization of the Française des Jeux, announced Wednesday the Minister of the Economy Bruno Le Maire, on the eve of the opening of the subscription period.

The State plans to sell 52% of the capital (out of a total of 72% today) and "on this sale, we are ready to reserve up to one-third for individuals," he said in a statement. interview in Paris.

He also said that the government has set the minimum threshold of 200 euros.

"The subscription is open from Thursday, November 7 and until Tuesday, November 19 at 20 hours, for individuals," said Le Mayor.

This range of prices announced by the Minister is indicative: the definitive price will be fixed only after the end of the subscription period, according to demand, and just before the first listing on the Paris Stock Exchange, which is scheduled to November 21st.

The state, which will put on the market nearly 100 million titles, would thus draw between 1.64 and 2 billion euros of this privatization, which would value the company between 3.15 and 3.8 billion, according to AFP calculations.

The potential benefit of the operation is to replenish the fund for innovation and industry.

To convince them to invest, several advantages are reserved for small savers, recalled the minister: a discount of 2% is thus provided on the titles they will buy, and they will also be awarded a free share for ten bought they keep them for 18 months.

"Free shares are, however, capped at 5,000 euros of shares purchased," warned Bruno Le Maire.

- The state intends to keep control -

Asked about the risks incurred by savers, as previously during the privatizations of Renault or EDF, Mr. Le Maire was reassuring, saying that "the markets are not comparable".

"Those of the energy and the automotive industry can vary more, especially depending on global factors," he said, highlighting the "dynamic growth" of the FDJ and the figures of the consumption of games in France "in regular increase".

On the side of private investors, they are "many" to have expressed their interest in this IPO, assured the minister, who however was careful not to mention names before the operation.

This privatization project has provoked sharp criticism, particularly in the Parliament where opposition has denounced a "short-termist" operation, an "economic aberration" or "an error that will have serious consequences in terms of public health", in particular in the fight against gambling addiction

The state, which currently owns 72% of the FDJ, "remains the largest shareholder with 20% of the capital.It will have three representatives on the board of directors.Finally, in case another shareholder wishes to acquire more than 10% of the the company, it will have to obtain the approval of the State.There is no question that the FDJ passes under foreign control, assured the minister.

Heir to the national lottery created in 1933, the FdJ is one of the few French public companies in good financial health: last year, the French have still bet about 16 billion euros in gambling.

Even after privatization, the French government will continue to pocket the approximately € 3.5 billion in tax and social revenue paid annually by the FdJ. It will also receive 380 million euros from the company in exchange for the monopoly to operate for 25 years lottery games and sports bets in its physical network.

The only cash inflow to which the State renounces concerns dividends: it had reached 87 million euros for the year 2018, a sum which will be drastically reduced with the reduction from 72% to 20% of its presence in the capital of the FdJ.

In 2019, the French Games plans to garner some 16.9 billion euros in bets, an increase of 7% compared to 2018.

© 2019 AFP