Ferrari To Pay $2.8B For Its Freedom From FCA
Set to be its own master within a year’s time, Ferrari must first pay its dues before freedom calls, all to the tune of €2.25 billion ($2.8 billion USD).
Automotive News Europe reports the payment will come from a sorting of affairs between the brand and parent company Fiat Chrysler Automobiles, consisting of “distributions and transfers of cash from Ferrari” among other transactions prior to the October 2015 separation.
CEO and Ferrari chairman Sergio Marchionne says 10 percent of the sports car brand will be made to the public between Q2 and Q3 of 2015, while 80 percent will be given to FCA’s investors; brand vice chairman Piero Ferrari will hold onto the remaining 10 percent.
The spinoff is part of an overall capital raising plan, which includes a $2.5 billion convertible bond set to mature in 2016, and underwritten by JPMorgan Chase, Goldman Sachs, Barclays and UBS. The plan will net FCA approximately €4 billion ($5 billion).
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
More by Cameron Aubernon
Comments
Join the conversation
There are two key paragraphs here: " Ferrari must first pay its dues before freedom calls, all to the tune of €2.25 billion ($2.8 billion USD)" and: "The plan will net FCA approximately €4 billion ($5 billion)." So the total for FCA will be US$7.800.000.000? Wow. Sergio is one shrewd automotive CEO!
Marcelo said this wouldn't happen, and they have been discussing this for years but it WOULD NOT HAPPEN. But it is!
Mr. Marchionne sure knows where to find value and find someone to pay it. He got a pile from GM and saved Fiat's bacon. Now he plans to sell Ferrari. What will he sell after that pile of money runs out, and he needs to save Fiat's bacon again?
Don't car companies have fleet average CO2 emission standards in the EU? Isn't that why Mercedes-Benz and BMW sell econoboxes? Isn't it why there was an Aston Martin iQ? Porsche, Audi, Bentley, Bugatti, and Lamborghini have SEAT, Skoda, and VW to offset their emissions, but what will an independent Ferrari do?