New company will be called Ferrari NV and could be valued at up to £8 billion (Rs 78,744 crore).
24 Jul 2015 | 3979 Views | By Hilton Holloway, Autocar UK
Fiat Chrysler Automobiles announced yesterday that it is going to list Ferrari on the New York Stock Exchange.
The carmaker plans to sell around 10% of the supercar maker to investors. Another 10% of what will be called Ferrari NV will remain in the ownership of Piero Ferrari, the son ...
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Fiat Chrysler Automobiles announced yesterday that it is going to list Ferrari on the New York Stock Exchange.
The carmaker plans to sell around 10% of the supercar maker to investors. Another 10% of what will be called Ferrari NV will remain in the ownership of Piero Ferrari, the son of Enzo Ferrari.
The remaining 80% of the shares in the newly independent supercar maker will be distributed to existing Fiat Chrysler shareholders.
In July Fiat Chrysler boss Sergio Marchionne said he expected Ferrari to be valued at "over £7 billion" (Rs 68,901 crore). Analysts have pointed out that such a figure would mean Ferrari represented 60% of the whole value of the Fiat Chrysler combine.
If the market eventually values Ferrari NV at around £8 billion, it would mean Fiat Chrysler would raise £800 million (Rs 7,874 crore) in cash from share sales and distribute around £6.4 billion (Rs 62,995 crore) in value to Fiat Chrysler shareholders.
This distribution of Ferrari shares should help Fiat Chrysler raise fresh funds from the shareholder. The money is expected to be partly invested in future new Alfa Romeo models.
Over the next three years Alfa is being relaunched with eight new models, which Marchionne hopes will attract premium profit margins.
However, Fiat Chrysler also has significant levels of debt, which is said to cost as much as £1.6 billion (Rs 15,748 crore) in interest payments each year.
There have been strong market rumours that Fiat Chrysler might also eventually sell off its Magneti Marelli components division, having received a number of approaches from investors.