Fiat Chrysler to receive EUR2.25B from Ferrari before spinoff

Article by Christian A., on November 16, 2014

Fiat Chrysler Automobiles would receive around EUR 2.25 billion ($2.8 billion) from Ferrari before the planned spinoff of the supercar unit in 2015, the carmaker said in filing with regulators in the United States.

Sergio Marchionne, FCA chief executive as well as Ferrari chairman, is planning to offer to the public around 10 percent of the sports carmaker in the second or third quarter of 2015 and distribute FCA’s remaining 80-percent stake to its own investors.

The Ferrari spinoff is part of a larger plan by Fiat Chrysler to raise EUR5 billion in funds to help trim debt and finance its five-year business plan. Marchionne is merging Fiat and Chrysler to create a carmaker large enough to take on the largest auto companies in the world like General Motors, Volkswagen Group and Toyota Motor Corp.

Marchionne remarked in October that Ferrari would distribute a dividend to shareholders prior to the spinoff and with Fiat Chrysler transferring some debt to the supercar maker.

According to the filing, Fiat has tapped JPMorgan Chase & Co., Goldman Sachs Group Inc., Barclays Plc and UBS AG to serve as underwriters for a $2.5 billion mandatory convertible bond that will mature in 2016. The bond is also part of the capital-raising plan.

Topics: fiat, chrysler, ferrari, ipo

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