Fiat Chrysler Automobiles plans to spin of its most iconic brand into a separate company.
Newly-formed Fiat Chrysler Automobiles began listing on the New York Stock Exchange earlier this month. In an official statement, FCA said the plan to spin Ferrari off into a separate company is part of a plan to raise capital that will support the recently merged company’s future growth.
“As we move forward to secure the 2014 – 2018 business plan and work toward maximizing the value of our businesses to our shareholders, it is proper that we pursue separate paths for FCA and Ferrari,” FCA CEO Sergio Marchionne said.
FCA will offer roughly 10 percent of Ferrari to the public and the remainder will be passed to FCA shareholders in 2015. The shares are expected to be listed in the U.S. and possibly a European exchange.
“The Board supports management’s determination that this transaction represents FCA’s best course of action to support the long term success of the Group while at the same time substantially strengthening FCA’s capital base,” Marchionne said.
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