PSA Peugeot-Citroen’s board met on 18 February in Paris as intense speculation mounted it was about to announce a vast capitalisation plan.
The amounts involved centre on a figure of around EUR3bn (US$4.1bn) to be raised between PSA partner Dongfeng and the French state as well as a rights offering, with the deal expected to be confirmed tomorrow as the automaker reveals its annual results.
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“There is a [board] meeting of PSA today,” a spokeswoman for the manufacturer told just-auto from Paris. “Everything being discussed will be what will be communicated tomorrow.
“It has started already…in our headquarters. We never make any comment about a board meeting.”
Reports have raised suggestions of a family rift concerning the capitalisation strategy involving Thierry Peugeot and his cousin, Robert Peugeot, although PSA insists the family has agreed to work towards the board’s proposals.
PSA said recently “under the preferred scenario,” the automaker would implement a capital increase reserved to Dongfeng Motor followed by a rights offering in which Dongfeng would participate.
The French State could also participate in these two capital increases on the same terms and conditions as Dongfeng.
France’s Economic Redevelopment minister, Arnaud Montebourg, described the involvement of Paris in the potential PSA capital increase as an act of “industrial patriotism.”
