The official has arrived. The board of directors of Fiat Chrysler Automobiles today announced that it has granted the management the authorization to develop a plan to separate the activities of Magneti Marelli from FCA. The shareholders of the Lingotto will receive the "shares of a new holding company Magneti Marelli".
Based on FCA's indications, the separation will be completed in late 2018 or early 2019 and Magneti Marelli shares will be listed on the Milan Stock Exchange, following the Ferrari model.
“The separation will create value for FCA shareholders and at the same time provide the necessary operational flexibility for the strategic growth of Magneti Marelli in the years to come. The spin-off will also allow FCA to further focus on its core portfolio and at the same time improve its capital structure,” said Sergio Marchionne, Chief Executive Officer of FCA.
“The separation of FCA and Magneti Marelli is a key ingredient of the 2018-2022 Business Plan which will be published in June” continued Marchionne “the Board of Directors of FCA believes that this separation is the most appropriate step and will benefit Magneti Marelli, FCA and our shareholders”.
Fiat Chrysler therefore dissolves its reservations on an issue that has been debated for months. No surprise for the market which had been expecting such a move since the beginning of March. We recall that last March 7, at the Geneva Motor Show, Marchionne himself had stated that he did not want to sell Magneti Marelli, indicating that the path to take for the group subsidiary should have been that of a spin-off with distribution of shares to FCA shareholders, starting with Exor. Also confirmed the times indicated, while the real news is the intention to list the company on the Stock Exchange. On the IPO, the CEO had in fact stated: “I don't need it, the value will emerge by itself”.
According to the information provided by FCA, the separation of Magneti Marelli "will be subject to the approvals required by the law, legal and tax investigations, the final approval of the transaction structure by the FCA Board of Directors and any other specific condition of this type of operation. FCA may, at any time and for any reason, modify or terminate the transaction and there is no assurance as to its timing or completion.
Il Fca title it immediately reacted to the announcement, shooting to the top of the Ftse Mib with an increase of 4,2% to 18,364 euros. The other stocks of the Agnelli Galaxy also rose: Exor and Cnh rose by 3,4%, Ferrari gained 1,24%.
