Rome - Italo-American car group Fiat-Chrysler Automobiles (FCA) said Wednesday it was going to spin off its racing car subsidiary Ferrari as part of plans to raise fresh capital for the business.
“The separation will be effected through a public offering of FCA's interest in Ferrari equal to 10 per cent of Ferrari's outstanding shares and a distribution of FCA's remaining Ferrari shares to FCA shareholders,” a company statement said.
Ferrari shares were going to be listed in the United States and, “possibly,” on a European stock market, FCA said.
FCA needs money to put into practice a five-year development strategy centred on the relaunch of Alfa Romeo, a venerable Italian car brand suffering from an outdated product range and shrinking sales.
“As we move forward to secure the 2014-2018 business plan and work toward maximizing the value of our businesses to our shareholders, it is proper that we pursue separate paths for FCA and Ferrari,” Fiat-Chrysler boss Sergio Marchionne said.
Sapa-dpa