Ferrari will pay Fiat Chrysler $2.8 billion before its spinoff
Fiat Chrysler Automobiles estimates it will receive about 2.25 billion euros ($2.8 billion) from Ferrari before it spins off the supercar unit next year.
"Prior to the separation we also intend to enter into certain other transactions including distributions and transfers of cash from Ferrari currently estimated at 2.25 billion euros," FCA said today in a filing with U.S. regulators.
FCA CEO Sergio Marchionne, who is also Ferrari's chairman, plans to list 10 percent of Ferrari in the second or third quarter next year and distribute Fiat Chrysler's remaining 80 percent holding to the London-based company's own investors.
The spinoff is part of a bigger capital-raising plan that also includes a $2.5 billion convertible bond issue to help cut debt and fund an ambitious business plan at the world's seventh-largest carmaker.
Marchionne says the measures will inject a total of 4 billion euros into the group.
Marchionne seeks to meld two regional carmakers into a single entity to challenge the likes of General Motors, Volkswagen Group and Toyota Motor Corp.
The CEO said last month that Ferrari would distribute a dividend to its shareholders before the spinoff and that Fiat Chrysler plans to transfer some debt to the supercar maker.
Fiat named JPMorgan Chase & Co., Goldman Sachs Group Inc., Barclays Plc and UBS AG as underwriters for a related $2.5 billion mandatory convertible bond, which will mature in 2016, according to the filing.
Ferrari Vice Chairman Piero Ferrari owns the remaining 10 percent of the company.
Bloomberg and Reuters contributed to this report
CAR REVIEWS »
Top 10 Best Chevrolet Models of All Time
9 Unique Ways to Customize Your Car
How to Find the Best Tow Truck Companies
6 Effective Maintenance Tips for Car Headlights
Your Guide to the New Skyactiv-X Engine from Mazda
How to Diagnose Severe Car Problems (Even When You Don’t Know Anything About Cars)
5 Tips for Finding a Good Mechanic You Can Trust
Shady Car Mechanic Tricks You’ve Never Known Before
Lifting a Truck Pros and Cons
View All Recent Posts
- More Photos