29/10/2014
NEWS STORY
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..