News Column

Fiat Plans to List 750 Million Shares on NYSE

July 3, 2014

By Brent Snavely, Detroit Free Press

Fiat Chrysler Automobiles plans to sell 750 million shares on the New York Stock Exchange. (file photo)

Fiat Chrysler Automobiles plans to list 750.5 million shares on the New York Stock Exchange later this year if Fiat shareholders approve a proposed merger plan on Aug. 1.

The shares will be valued at an estimated $5.03 each, according to the registration statement filed today with the Securities and Exchange Commission.

The registration statement was filed by Fiat Investments N.V., a holding company incorporated in the Netherlands that will be renamed Fiat Chrysler Automobiles if shareholders approve a proposed corporate restructuring.

Fiat picked the Netherlands because will have additional flexibility in raising capital or making strategic acquisitions or investments, according to the registration statement.

Fiat also said revisions to how valued Chrysler shares previously owned by the UAW Retiree Medical Benefits Trust resulted in a one-time gain of 223 million euros ($303 million). Because of that change, Fiat revised its first quarter loss downward to 173 million euro ($235 million) from 319 million euro ($434 million).

Fiat shareholders will vote on the merger plan that calls for current Fiat shareholders to receive one share of Fiat Chrysler Automobiles for each share of Fiat. Most current shareholders also will be eligible for a second voting share that is designed to reward Fiat shareholder for their loyalty, effectively giving them two voting shares.

Fiat Chrysler Shares will trade under the ticker symbol FCA on both the New York Stock Exchange as well as the Mercato Telematico Azionario, or MTA -- the Italian stock exchange.

Trading will not begin until at least 60 days after the shareholder meeting and after the Dutch and Italian regulators, as well as the stock exchanges, approve the transactions.

Fiat became Chrysler's 100% owner in January when it agreed to pay $4.35 billion for the 41.5% of the Auburn Hills automaker held by the UAW Retiree Medical Benefits Trust.

Fiat and Chrysler CEO Sergio Marchionne is restructuring Fiat and Chrysler into a single corporate entity so that it is better positioned to attract investors, borrow money from banks and operate as a single global automaker.

Exor, an investment company controlled by Fiat's founding Agnelli family, is currently the largest shareholder of Fiat. Exor owns 30.05% of Fiat and will likely hold the same interest in FCA common shares following the transactions if all shareholders elect to transfer their Fiat shares into Fiat Chrysler Automobile shares.

Contact Brent Snavely: 313-222-6512 or bsnavely@freepress.com. Follow him on Twitter @BrentSnavely.


For more coverage on the automotive industry, please see HispanicBusiness' Auto Channel



Source: (c)2014 the Detroit Free Press Visit the Detroit Free Press at www.freep.com Distributed by MCT Information Services


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