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Ferrari to split from Fiat Chrysler Automobiles

NEWS STORY
29/10/2014

Fiat Chrysler Automobiles has announced that its board has authorized Ferrari to be split from the company.

The split will be effected through a public offering of Fiat Chrysler Automobiles (FCA) interest in Ferrari equal to ten percent of Ferrari's outstanding shares and a distribution of FCA's remaining Ferrari shares to FCA shareholders.

The Board authorized FCA to take the steps necessary to complete these transactions in 2015 and expects the shares will be listed in the United States and possibly on a European exchange.

"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," said Fiat Chrysler CEO Sergio Marchionne in a statement.

"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," he added of a move which has been forecast for some time and should raise much needed capital to support Fiat Chrysler's future growth.

"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."

"I am delighted to have taken this additional step in the development of FCA," added John Elkann, Chairman 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."

The split will be subject to customary regulatory approvals, tax and legal considerations, final approval of the transaction structure from the FCA Board of Directors and other customary requirements..

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READERS COMMENTS

 

1. Posted by Hondawho?, 21/11/2014 11:50

"It seems the only good thing about owning a Ferrari these days is to have in in the garage. looking at it and/or if you are brave, waiting for the odd day to take it out. You cant drive it fast "Your nicked sir", you can't leave it anywhere as some jealous green voting idiot will key it, if you drive it you are subject to expletives from many that are unrepeatable on this forum....... so with the development that has gone on in the past twenty years, "Ferrari World in Abu Dhabi, Ferrari shops around the World, what more is left? Not a lot, maybe the end of the road for the marque as we know it perhaps? Its only a view, I hope I am wrong but..........."

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2. Posted by Hondawho?, 01/11/2014 10:12

"Be prepared if the financial issues are not sorted, when the Ferrari split comes into being then they may quit F1 and go back into sports car racing! Maybe!!!"

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3. Posted by nealio, 30/10/2014 16:53

"Now that's so real asse-kickin' Sergio!"

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4. Posted by Superbird70, 30/10/2014 9:56

"my tyres are going off you are probably right. In this case it is more like Leyland owning BMW"

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5. Posted by my tyres are going off, 30/10/2014 9:23

"Superbird70 I see your point but does it work that way? Did people stop buying BMW when they owned Leyland? I think Fiat Chrylser need the cash to get over the USA problems and that the quickest way to do it is to sell Ferrari. But as this is an F1 Forum on to the Alonso smiling thing did Luca Di Montezemolo give him a heads up on what was to come?"

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6. Posted by Superbird70, 29/10/2014 23:13

"Maybe they feel a need to distance themselves from the parent company because of the recent events in North America; http://www.theglobeandmail.com/globe-drive/news/industry-news/slammed-by-consumer-reports-fiat-chrysler-quality-boss-takes-the-fall/article21349904/

It may be to isolate Ferrari as higher quality automaker. Can't tarnish the brand."

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7. Posted by nonickname, 29/10/2014 19:50

"I think Alonso must be smiling now."

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8. Posted by my tyres are going off, 29/10/2014 16:54

"It will be interesting to see if Ferrari can continue to reverse lorry loads of cash into Maranello. Perhaps they will start to support a cap on spending, obviously in the best interest of the sport."

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9. Posted by Growler2, 29/10/2014 14:32

"Wow! The prospectus for the public offering really will be worth reading.

I had to smile at Elkann's comments: what he means is that at last they can free Fiat-Chrysler from all the baggage that Ferrari carries.....
"

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10. Posted by MrShadow, 29/10/2014 13:53

"We will lose Ferrari in 2020 due to economic misfortune. Sad."

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