Fiat Chrysler Automobiles plans to spin off luxury sports car maker Ferrari and list the shares,
Reuters reported.
Fiat Chrysler is also planning a $2.5 billion convertible bond issue to fund its business plan, the report said.
The company moved its primary share listing to New York in October. It will list a 10% stake in Ferrari in a public offer. The remaining 80% stake held by Fiat Chrysler will be distributed to shareholders, including Fiat's founding Agnelli family. The Agnellis control 30% of Fiat Chrysler, the Reuters article said. Piero Ferrari, son of founder Enzo Ferrari, owns a 10% stake in Ferrari.
Fiat Chrysler CEO Sergio Marchionne will remain chairman of Ferrari after the spin-off, the Reuters report said.
A
Wall Street Journal
article noted
that Ferrari's former chairman, Luca Cordero di Montezemolo, who held the post for 23 years, had opposed a Ferrari IPO.
The Agnelli family's holding company, Exor, will invest €600 million in the convertible bond, Reuters reported. (Sources: Reuters, Oct. 29, 2014;
Wall Street Journal
, Oct. 30, 2014.)
-
725 reads