The board of PSA Peugeot Citroën approved plans for a capital increase of about €3 billion ($4.1 billion),
Bloomberg reported.
Under the plan, Chinese automaker Dongfeng Motor Corp. and the French government would each receive stakes of about 14%, paying at least €750 million, the article said. Peugeot would then hold a rights issue of about €1.4 billion.
“A deal with Dongfend would represent a defining moment for Europe’s second-largest carmaker, which has been controlled by the founding family since its establishment in 1896 by Armand Peugeot,” the Bloomberg report said.
According to the report, the Peugeot family would invest about €100 million to maintain a 14% stake. The article added: “Members of the family, whose current holding totals 25.5 percent, are divided over whether to accept the deal, people familiar with the matter said.”
The Bloomberg article said Peugeot aims to reach a final agreement on a deal with Dongfeng and the French government by the middle of February. (Source: Bloomberg, Jan. 20, 2014.)
-
635 reads