Un deal that is worth almost one billion euros the one stipulated between Stellantis and General Motors. The former will in fact repurchase 2,2% of its capital from the latter as part of a total transaction worth 923 million euros. The news seems to meet the favor of the Stock Exchange. Mid-morning the Stellantis title earns 1,05% of its value to 13,686 euros, a performance that beats that of the FtseMib, currently up by 0,7%.
What the agreement between Stellantis and General Motors provides
According to the provisions of the agreement, the Italian-French company will buy back 2,2 per cent of its capital, equal to 69,1 million Stellantis shares, from General Motors. It is a package of securities that the US giant will obtain from theexercise of warrants issued by Peugeot in 2017. Five years ago, in fact, the warrants were issued in favor of GM as part of the purchase by the Americans of the Opel Vauxhall car business from the PSA group.
Faurecia is also part of the agreement, one of the largest manufacturers of automotive components in the world. Following the exercise of the warrants, Stellantis will also deliver approximately 1,2 million Faureci ordinary shares to GM, to which will be added a total cash amount of approximately 130 million euro relating to rights to dividends paid by PSA and Stellantis.
A deal worth almost a billion
Both the issuance operations of Stellantis ordinary shares in favor of General Motors and the repurchase of the same by Stellantis will be held the 15 September. The repurchase price to be paid by Stellantis will amount to 923.247.678 €, a figure calculated on the basis of the volume-weighted average price of a Stellantis ordinary share recorded on the regulated market of Euronext Milano in the last five days.
Stellantis' purchase of common treasury shares from GM will be executed under the authorization approved by the shareholders' meeting held on April 13, 2022.
