Ferrari spin-off to complete in 2015

Ferrari spin-off to complete in 2015

Fiat Chrysler says it will spin off Ferrari through a public offering of its interest next year in the Italian luxury automaker equal to 10% and hand the remaining 90% to FCA shareholders.

FCA expects Ferrari shares will be listed in the US and possibly a European exchange.

"Coupled with the recent listing of FCA shares on the NYSE, the separation of Ferrari will preserve the Italian heritage and position of the Ferrari business and allow FCA shareholders to continue to benefit from the value inherent in this business" said FCA chairman, John Elkann.

For his part, FCA CEO, Sergio Marchionne, added. "Following our acquisition of the minority interest in Chrysler earlier this year, the transformation of Fiat and Chrysler into FCA was completed earlier this month with our debut on the New York Stock Exchange.

"As we move forward to secure the 2014-2018 business plan and work toward maximising the value of our businesses to our shareholders, it is proper that we pursue separate paths for FCA and Ferrari.

"The Board supports management's determination that this transaction represents FCA's best course of action to support the long term success of the Group while at the same time substantially strengthening FCA's capital base."

The spin-off of Ferrari will be subject to customary regulatory approvals, tax and legal considerations, final approval of the transaction structure from the FCA Board of Directors and other normal requirements.