Fiat Chrysler will spin off Ferrari
Fiat Chrysler plans to list about 10 percent of Ferrari’s outstanding shares through a public offering and distribute the rest to Fiat Chrysler’s shareholders. The transaction is expected to be completed next year.
“The separation of Ferrari will preserve the cherished Italian heritage and unique position of the Ferrari business and allow F.C.A. shareholders to continue to benefit from the substantial value inherent in this business,” said John Elkann, the chairman of Fiat Chrysler.
Fiat took full control of Chrysler this year, and its shareholders recently approved the merger of the two automakers, creating Fiat Chrysler Automobiles, or F.C.A..
Fiat Chrysler said that its third-quarter revenue rose 14 percent, to 23.6 billion euros, or about $30 billion. The company’s net profit declined slightly, to €188 million.
The Ferrari spinoff is subject to regulatory approval and final signoff on the transaction’s structure by the Fiat Chrysler board. ■