Link Multiple
Key features
Advantages |
Full capital guarantee on your initial investment
+ Minimum annual return of 2%
OR Multiple effect of 12
+ Entitlement to a discount and dividends
|
Things to consider before investing |
Investment locked in for 5 years
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Advantages
- Benefits associated with purchased shares
For each share bought with your personal contribution, you are entitled to:- a discount of 20% on the reference price;
- potential dividends. Once you have owned your shares for two years, you may be entitled to a bonus of 10% on dividends, where applicable; and
- the voting rights associated with the shares.
- Benefits associated with Stock Appreciation Rights (SARs)
Stock Appreciation Rights (SARs) are a commitment by your employer to guarantee your capital investment in euros and to benefit from good performance of the share, both at maturity and in the event of early release. You are allocated a SAR for every share you purchase under the Link Multiple plan.
A SAR offers protection for your personal contribution in euros1 and, if applicable, additional returns based on the higher amount between:
- A guaranteed capitalized return of 2% per year on your personal contribution in euros2.
Regardless of any fluctuations in the ENGIE share price, you are guaranteed to benefit from a capitalized return of 2% per year on your personal contribution in euros; and - 12 times the protected average increase of the ENGIE share price over the lock-in period, if the fluctuations in the ENGIE share price compared to the reference price are favorable3. This amount will be paid instead of the capitalized return of 2% per year if it turns out to be higher.
The amount that you will be entitled to under the SAR will be paid by your employer in your country’s currency at the exchange rate applicable at the time of payment, after deducting any applicable tax and social security withholdings.
How does it work?
- At the start of the transaction, you will be granted a certain number of shares, determined by the amount of your personal contribution and the share subscription price. For each share purchased under the Link Multiple plan, your employer will grant you a Stock Appreciation Right (SAR).
- Beginning on the date of completion of the transaction (December 22, 2022), the ENGIE share price will be recorded once per month on the 15th calendar day of each month (or, if that day is not a Trading Day, on the preceding Trading Day), until the end of the lock-in period, for a total of 60 recorded share prices. These 60 recorded share prices are used to determine an average ENGIE share price over the five-year period.
- If some of these 60 recorded share prices are below the reference price, they will not be taken into account and will be replaced by the reference price for the purposes of calculating the average. This average is therefore considered to be “protected.”
- This average will then be compared with the reference price to obtain the protected average increase over the period.
- At the end of the 5-year lock-in period or in the event of early release, you will automatically receive payment for the amount due to you under the SAR, corresponding to:
(i) the higher of the following two amounts:
o the protected average increase x 12 x the number of shares acquired in Link Multiple;
and
o the guaranteed capitalized return of 2% per year on your personal contribution in euros; and
(ii) the difference between your personal contribution in euros and the market value of your ENGIE shares at the time of your exit, if that value is lower.
Use our simulator to try out different investment simulations
What does Link Multiple entail?
Your investment is locked in for 5 years, i.e. until December 22, 2027, except in the case of early release (refer to your “Local Supplement” for further details).
If you are in a country outside of the Eurozone, the value of your investment also depends on the fluctuation of foreign currency exchange rates and may go up or down.
What happens to my investment at the end of the lock-in period?
You invest in ENGIE shares and receive SARs, which are locked in for a 5-year period (except in the event of early release—see your “Local Supplement”).
At the end of the period or upon early release, you will receive the amount owed to you under the SAR. As for the shares, you will have the choice to:
- keep your shares in your registered shareholder account, or
- sell all or part of them.
Please note:
With SARs, the amount that may be owed to you under the guarantee on your personal contribution is calculated based on the share price at the end of the period or at the time of early release, as stipulated in the SAR Terms and Conditions.
However, this guarantee applies to the value of your investment in euros. Once converted into the currency in which you invest in Link 2022, you may not recover 100% of your personal contribution in your local currency.
In addition, the amount of any tax and social security withholdings applicable to you will be automatically deducted from the amount you receive under the SAR.
If you keep your shares following the end of the period covered by the SAR payment, you will no longer be entitled to the guarantee. Depending on the sale price for your shares, there is a risk that you may record a capital loss.
1 If ENGIE’s share price at maturity or following early release is lower than the subscription price paid at the time of your participation in Link 2022, each SAR entitles you to receive an amount equal to this difference (before tax and social security charges): this means that you recover 100% of your personal contribution in euros with Link Multiple.
2 Except in certain exceptional cases as described in the SAR Terms and Conditions.
3 In the event of an extraordinary dividend or a dividend to which a bonus is applied, employees are entitled to a bonus on the dividend through improved performance.