Fiat Chrysler shareholders voted in favor of the separation of the Ferrari brand from FCA as part of Sergio Marchionne’s plan to raise cash and reduce debt of the Italo-American company.The shareholders’ meeting was held in Amsterdam where about 98 per cent of them approved the separation, with Fiat-Chrysler to distribute the remaining 80 per cent stake in Ferrari back to its own investors by early next year.This comes after FCA already sold 10 per cent of Ferrari in a public offering, raising around $1 billion. The whole company is burdened with a total of €10.9 billion in debt, with FCA raising about €3.8 billion from the divorce with Ferrari.This deal will reduce FCA’s debt by about €1.6 billion but at the same time, the seventh-largest automaker in the world loses its most valuable asset. Piero Ferrari, Enzo’s son still holds the remaining 10 per cent of Ferrari.“The separation will better enable Ferrari to realize its full potential,” Marchionne said at the shareholders’ meeting. “It will also allow Fiat investors to benefit directly from the substantial value inherent in Ferrari.”Ferrari had announced earlier on Monday that they are borrowing a total of €2.5 billion to finance their demerger from Fiat-Chrysler and help their former parent company in the funding of Sergio’s ambitious growth plan.
Source: Ferrari Officially Separated From Fiat-Chrysler After Shareholders’ Vote Of Approval
Thanks for reading.
Tim
