PSA Group has repurchased 10m of its own shares from Chinese JV partner Dongfeng Motor Group (DFG) and approved an amendment to the share repurchase agreement concluded with DFG.
The 10m shares of PSA representing approximately 1.1% of the share capital of the company.
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These shares were acquired by PSA on 23 September through an off-market transaction at a price of EUR16.385 per share which represents a total purchase price of EUR163,850,000 (excluding costs) and will be cancelled after the settlement-delivery of the transaction that will take place on 25 September 2020, in accordance with the PSA Group share buyback programme.
PSA said the transaction was consistent with the announcement made on 18 December 2019 concerning the contemplated combination of PSA and Fiat Chrysler Automobiles which will entail the creation of Stellantis, the fourth largest global OEM by volume in an automotive industry undergoing fundamental changes.
Subject to final approval by the DFG board, PSA and DFG have also agreed to amend the share repurchase agreement signed on 17 December 2019 to provide that the additional 20.7m shares covered by the agreement will have to be sold by DFG to one or several third parties, in one or several transactions by the end of 2022 in the event DFG has not sold those shares to PSA or to one or several third parties before 31 December 2020.
