PSA is the buyer in FCA 50-50 merger
The math bears it out. FCA shareholders will get a premium of almost 5 billion euros ($5.6 billion), based on closing prices Tuesday, before reports of the talks, as both sides shed assets before throwing their remaining equity into the pot.
Adjusting for the differences in market values and a 5.5 billion-euro dividend being paid out to Fiat Chrysler shareholders, “achieving a 50/50 shareholding suggests PSA is paying a 32 percent premium to assume control of FCA,” Jefferies analyst Philippe Houchois said in a note.
As of Tuesday, PSA had a market value of 22.6 billion euros. Before it merges with FCA, it will hand shareholders its almost 3 billion-euro stake in French parts maker Faurecia, leaving about 19.6 billion euros to be contributed to the new company.
Of the 5.75 billion euros in payouts before the deal closes, Fiat’s founding Agnelli family will reap almost $1 billion in value.
The family’s holding company, Exor, is Fiat Chrysler’s largest shareholder and will receive about 1.65 billion euros of the total. The family owns just over half of Exor, so its share of the windfall would be just under 900 million euros, or almost $1 billion.
Fiat Chrysler’s Chairman, Agnelli family scion John Elkann, will still have a lot of clout. He will be chairman of the merged company, and Exor will be its largest shareholder with about a 14 percent stake.
Source: Automotive News Europe