Fiat is going to spin off Ferrari into a separate company. "Fiat-Chrysler Automobiles announced this morning that it plans to spin off Ferrari in a public listing. The Italian manufacturing conglomerate has owned the smaller sports car company for 45 years, and now, they're parting ways."
Already being discussed here: https://www.ferrarichat.com/forum/ferrari-discussion-not-model-specific-sponsored-algar-ferrari/466084-fiat-sells-ferrari.html And here: https://www.ferrarichat.com/forum/ferrari-discussion-not-model-specific-sponsored-algar-ferrari/466064-fiat-spin-off-ferrari.html They're putting 10% of Ferrari up for sale - Not quite selling it off completely! The Agnelli family still own 30% and Piero Ferrari still owns 10%. This "sell off " will make very little difference to Ferrari as a company!
Not true, the 90% will be owned by FCA shareholders who can sell on the open market. If all Fiat/ Chrysler shareholders sold their Ferrari shares, the family and Piero would be in the minority. In any case I am sure that they both would offer a chunk of their Ferrari shares in the market to capitalize on perceived value /
Fiat needs cash now. It's about the money. It appears that the deal is structured to leave Ferrari with a mountain of debt. The days of unlimited racing budgets are about over.
The Agnelli family does not own a 30% stake in Ferrari. Exor owns a 30% stake in FIAT/Chrysler. Ferrari's ownership breaks down like this: FIAT owns 85%, Piero owns 10% and the Mubadala Development Company owns the remaining 5%.
Indeed. Marketing hyperbole. Fiat is probably never going to let Ferrari out of its control. I bet it's the most profitable company they own . Or at least the most successful by far. And yes, those unlimited F1 budgets will come crashing down sooner rather than later. The world economy is going to take a long time to recover.
That's right. Exor will get 25,54% of Ferrari shares. It's a smart way for the Agnelli/Elkann family to sell FCA and keep Ferrari. Today, they would lose both if they sell FCA.
I keep seeing folks saying that they're going to lever up Ferrari as part of this. I didn't see anything suggesting that in the announcement. The $2.5 bn convertible offering is at the FCA level. Is there something I'm missing? Thanks
worst fears appear to be happening. soon a "ferrari" will be parked on every street just like porsche. Will we still love them? Absolutely, but not the same way. As far as I'm concerned I see too many Ferraris now.
Obviously the announcement doesn't include the actual language of the agreement (if there is any yet) but those familiar with this sort of deal believe that Ferrari will be left holding the bag.
This is a spinoff. At this stage of a spinoff, there isn't any agreement. I'd be healthily skeptical of "those familiar with this sort of deal." Lots of self-appointed experts running around!