Ferrari Pays $2.8B in Spinoff
Fiat Chrysler Automobiles (FCA) is poised to receive about $2.25 billion Euros ($2.8B) from Ferrari before the supercar maker separates from the group next year.
“Prior to the separation we also intend to enter into certain other transactions including distributions and transfers of cash from Ferrari currently estimated at 2.25 billion euros,” said FCA in a U.S. regulator filing.
SEE ALSO: FCA to Spin Off Ferrari Into Separate Company
Sergio Marchionne, FCA’s CEO and Ferrari’s current chairman, plans to list 10 percent of Ferrari in the second or third quarter of next year, while the company’s remaining 80 percent holding will be distributed to the London-based company’s own investors. This is all part of a capital raising plan that also includes a $2.5 billion convertible bond issue.
“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.
When all is said and done, the move should inject roughly 4 billion euros into FCA.
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Stephen covers all of the day-to-day events of the industry as the News Editor at AutoGuide, along with being the AG truck expert. His truck knowledge comes from working long days on the woodlot with pickups and driving straight trucks professionally. When not at his desk, Steve can be found playing his bass or riding his snowmobile or Sea-Doo. Find Stephen on <A title="@Selmer07 on Twitter" href="http://www.twitter.com/selmer07">Twitter</A> and <A title="Stephen on Google+" href="http://plus.google.com/117833131531784822251?rel=author">Google+</A>
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