Exit rights exercised by Fiat investors below 500 million euros cap

Article by Christian A., on September 6, 2014

Around EUR463.6 million ($610 million) in cash-exit rights were exercised by investors at Fiat who wanted to divest their stake in the Italian carmaker ahead of its merger with Chrysler Group. The exercised rights were just a bit below of the EUR500-million limit set by Fiat chief executive Sergio Marchionne.

Fiat said in a statement that around 60 million shares were filed by investors at the cash-exit price of EUR7.727 a share -- equivalent to around 6.3 percent of the carmaker’s EUR9.5-billion share capital. It was vital for the exercise not to top the EUR500 million spending cap since exceeding it would have delayed Fiat’s merger with Chrysler, which is on pace for mid-October.

The exit price is around 1.9 percent higher the EUR7.58 that the shares cost by the end of trading in Milan Wednesday. The submitted shares will be offered to the remaining Fiat’s shareholders at the exit price from September 5 to October 6. Once the offer to remaining investors expires, Fiat may offer it on the open market at that price.

Creditors, including bondholders, still have the right to exercise exit rights. The CEO recently disclosed that shares offloaded by exiting investors may be used "to create liquidity."

Fiat has said it is not expect opposition from creditors to hinder the merger although it reiterated that the marriage may not be completed if the buyout costs for exit rights and creditors opposing the deal exceed the cap.

Fiat is planning to the submitted share as part of the new company’s listing on the New York Stock Exchange possibly on Oct. 13, 2014. Marchionne is combining Fiat and Chrysler in a bid to create a carmaker large enough to take on global leaders like General Motors Co., Volkswagen Group and Toyota Motor Corp. [source: automotive news - sub. required]

If you liked the article, share on:

Topics: fiat

Comments

Recommended

TOYOTA GAZOO Racing revealed that it will be participating in the 2018 Tokyo Auto Salon with the theme “Meister's Workshop.” The company will showcase models that have been part of...
by - December 16, 2017
Infiniti has commenced sales of the new 2018 Infiniti QX80 full-size luxury sports utility vehicle. Aside from the standard specs and optional features, potential customers would want to know how...
by - December 15, 2017
If there is one thing that Pagani Automobili and Fiat have in common, it is the fact that they are Italian companies that build and assemble vehicles. There is currently...
by - December 15, 2017
It’s Star Wars fever once again, and the second installation of the trilogy sequel -- “Star Wars: The Last Jedi” -- is finally hitting theaters. Avid fans of the franchise...
by - December 15, 2017
Audi Sport is known for creating high performance versions of some Audi vehicles, with a focus on higher levels of sportiness. So far, its high-performance creations are all powered by...
by - December 14, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries