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Fiat has finally
come to agreement to repurchase the 28 percent of Ferrari
shares which are currently held by a consortium of banks
headed by Italian institution Mediobanca. The issue is now
finally resolved four years after Fiat originally sold the
minority stake, and three months after a "call option" to
buy back the shares expired, but which was extended to the
end of September. The matter was also further clouded by a 5
percent stake that was sold in the intervening period by
Mediobanca to the government of Abu Dhabi owned Mubadala
Development Company, who will retain their stake, although
Fiat holds a further "call option" on this also.
"Fiat today exercised its call option to buy back from
Mediobanca and the other members of the consortium 2.3
million Ferrari shares, or 28.63 percent of the share
capital, thereby raising to 85 percent its interest in
Ferrari S.p.A.," a statement issued by the Fiat Group in
Turin yesterday read. "The call option was provided for by
the agreements signed on the occasion of the sale which took
place in 2002. The exercise price of the option amounts to
approximately €892 million, to be paid upon closing expected
within the next several days.
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The issue of the Mediobanca shares is now resolved
four years after Fiat originally sold its stake, and
three months after a "call option" to buy back the
shares expired, but which was extended to the end of
September. Above: Ferrari F430 Spider at the 2006 Paris Motor
Show. |
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Fiat has finally come to agreement to repurchase the
28 percent of Ferrari shares which are currently
held by a consortium of banks headed by Mediobanca.
Above: Ferrari 599 GTB Fiorano at the 2006 Paris Motor Show. |
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"Mubadala Development Company, which currently owns an
approximately 5% stake in Ferrari S.p.A., on which Fiat
holds a call option, will remain a member of the Ferrari
shareholder base, notably in connection with the important
project currently underway for the development of a theme
park dedicated to the Prancing Horse in Abu Dhabi," the
statement continued.
"Fiat will repurchase the Ferrari shares through the use of
available cash resources, without resort to the capital
markets for new financing. Reflecting its healthy operating
performance and recent disposals of non-strategic assets,
the Company enjoys a strong cash position. Today’s
transaction is part of the Group’s strategy to focus on its
core business and enhance all its automotive activities,
among which Ferrari stands as an undisputedly prestigious
and world-renowned brand for its high technological
content," it concluded.
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