Fiat communicated to Veba (the trust administered by the Uaw union) its intention to exercise its purchase option on a second tranche of the investment held by Veba in Chrysler Group LLC, equal to approximately 3,3% of the capital. Lingotto, according to the note, will pay an exercise price determined according to the agreements between the parties on the basis of a market multiple (not exceeding the Fiat multiple) applied to Chrysler's EBITDA for the last four quarters, less industrial debt net.
This amount must be reduced according to the agreement by an amount equal to the 'contingent value rights settlement price' (which cannot be lower than 10% or higher than 20% of the exercise price of the option). According to Fiat's calculation, the net amount to be paid for the purchase of this second tranche of Veba's stake in Chrysler is US$198 million. Fiat will therefore rise to 65,17% of Chrysler's capital.
