10 percent of Ferrari will be sold to the public, remaining shares will go to FCA shareholders

Article by Andrew Christian, on October 29, 2014

According to the latest reports, it appears that Fiat Chrysler Automobiles NV plans to sell 10 percent of Ferrari shares, while the rest of 90 percent will be give to its own shareholders. Chrysler officially announced that the separation will be completed next year and Ferrari shares will be listed in the United States and possibly in Europe.

The official press release said that Ferrari and Fiat Chrysler Automobiles NV plans need to pursue separate paths.

As you may know already, this news comes after former chairman Luca Cordero di Montezemolo stepped down from Ferrari and replaced by Sergio Marchionne. Several reports said that Luca Cordero di Montezemolo had a clash with Marchionne over strategy.

"I am delighted to have taken this additional step in the development of FCA. Coupled with the recent listing of FCA shares on the NYSE, the separation of Ferrari will preserve the cherished Italian heritage and unique position of the Ferrari business and allow FCA shareholders to continue to benefit from the substantial value inherent in this business" said John Elkann, Chairman of FCA.

FCA CEO Sergio Marchionne added. "Following our acquisition of the minority interest in Chrysler earlier this year, the transformation of Fiat and Chrysler into FCA was completed earlier this month with our debut on the New York Stock Exchange. 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," Marchionne continued, "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."

Topics: ferrari, ipo

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