NEWS
Ferrari on the block
Fiat Group to spin Ferrari off to raise recovery fundingFerrari's days of feudal semi-autonomy will be over by next year, with Fiat Chrysler this week announcing it plans to spin off its supercar icon.
FCA CEO Sergio Marchionne (pictured) only took over Ferrari presidency this month and has wasted no time delivering the news of Ferrari's future outside Fiat Chrysler.
With FCA desperate to fund its €48 billion turnaround plan, Marchionne announced that Ferrari would be spun off, with a 10 per cent stake listed on an unspecified stock exchange and 90 per cent distributed amongst existing FCA shareholders.
That would make the long-time Fiat family, the Agnelli clan, once again the largest stockholder in Ferrari. Marchionne hinted that the stock may be listed in the US and perhaps even a European stock exchange.
"As we move forward to secure the 2014-2018 Business Plan and work toward maximizing the value of our businesses to our shareholders, it is proper that we pursue separate paths for FCA and Ferrari," Marchionne said.
The FCA board authorised the breakaway of Ferrari to be finalised by 2015.
"I am delighted to have taken this additional step in the development of FCA," FCA Chairman and Agnelli scion John Elkann said.
"Coupled with the recent listing of FCA shares on the NYSE, the separation of Ferrari will preserve the cherished Italian heritage and unique position of the Ferrari business and allow FCA shareholders to continue to benefit from the substantial value inherent in this business."
Fiat took a 50 per cent stake in Ferrari in 1969. By 2008, Fiat owned 85 per cent of Ferrari, with the rest split between the Middle Eastern investment group, Mubadala Development Company (5%) and Enzo Ferrari's son and current Ferrari vice-Chairman, Piero, who owns 10 per cent.
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Written byMichael Taylor
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