Renault plans to promote its stake in Daimler value about 1.2 billion euros ($1.4 billion), securing funds for its turnaround efforts after a file annual loss.

The French automaker will exit its complete holding in Daimler, a roughly 1.5 % stake, in line with a statement on Thursday.

Renault already has sufficient demand for all of the inventory, in line with individuals acquainted with the matter, who requested to not be recognized as a result of the knowledge is non-public.

Proceeds from the sale will enable Renault to “speed up the monetary de-leveraging of its automotive exercise,” the corporate stated.

It added that its industrial partnership with Daimler, which dates again greater than a decade, stays unchanged and isn’t affected by the transaction.

Renault warned buyers final month that one other difficult yr is forward after recording a worse-than-expected 8 billion-euro annual web loss.

CEO Luca de Meo has been battling day by day to safe sufficient semiconductors to maintain crops open, complicating his try to steer the corporate out of the rut it’s been in since long-time chief Carlos Ghosn was arrested in Japan in late 2018.

Daimler shares have surged for the reason that Mercedes-Benz maker introduced plans early final month to spin off its truck unit. The inventory closed Wednesday at a three-year excessive.

Representatives for Daimler had no instant remark.