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

Article by Christian Andrei, 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

If you liked the article, share on:


Login or Create new account to add a comment!


Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016
Most of you may have heard or already have one of those autonomous home appliances doing the house chores. Thus, it’s not anymore unusual to see a car going places...
by - October 20, 2016