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FCA shareholders back Ferrari spin-off

AFP
AFP - [email protected] • 4 Dec, 2015 Updated Fri 4 Dec 2015 08:48 CEST
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Fiat Chrysler shareholders on Thursday approved the spin-off of the group's sports and racing car unit Ferrari which is expected to take place in January.

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The shareholders, meeting in Amsterdam, backed the separation with 98 percent voting in favour.

The Fiat Chrysler Automobiles group "will transfer all of the shares held by it in Ferrari N.V. to FE Interim B.V," a newly-formed Dutch company which will issue shares to FCA's shareholders in January 2016, it said in a statement.

Ferrari, known for its high-price sports cars, is the biggest and most glamourous name in Formula One racing and the team's logo of a black stallion against a red background is instantly recognised by motorsport fans around the world.

FCA head Sergio Marchionne told shareholders on Thursday that the separation was "the start of a new chapter".

It would "allow Ferrari to better realise its potential for future growth and follow its own strategies with greater financial and operational independence," he said.

He said a separation of other brands from the group in the short term was "highly improbable".

The group sold 10 percent of the legendary carmaker in an initial public offering in October which valued Ferrari at $10.6 billion (€10 billion).

Fiat Chrysler owned 90 percent of Ferrari before that flotation.

With a heavy debt level and a plan to invest $48 billion to expand its total worldwide sales to seven million vehicles per year, the spin-off is aimed at strengthening Fiat Chrysler's finances.

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AFP 2015/12/04 08:48

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