PSA Peugeot-Citroen is confirming its intention to proceed with a EUR3bn (US$4.1bn) capital increase, despite speculation of a rift at family level.
Rumours in France have suggested chairman, Thierry Peugeot and his cousin, Robert Peugeot, disagree with the strategy that could also see the involvement of PSA partner, Dongfeng and the French State.
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“We are not able to comment about [the] Peugeot family, but obviously if we are saying the Conseil de Surveillance [Supervisory Board], has approved of the working of that project [capital increase], it means the family has agreed to working towards to that report,” a PSA spokeswoman in Paris told just-auto.
Further details of the plan are slated to be announced at PSA’s annual results on 19 February, although the company stressed it was unable to give any “assurance” concerning the project.
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 Motor.
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By GlobalData“Based on recent media reports concerning PSA’s plan to implement a capital increase and strengthen its industrial and commercial alliance with Dongfeng Motor, as announced…20 January, the company would like to clarify the following points,” said a PSA statement.
“The Supervisory Board at its meeting on 5 February 2014, expressed its full support for the project as presented by the Managing Board and authorised the latter to continue negotiations with a view to obtaining the Supervisory Board’s approval when it meets on 18 February.”
France’s Economic Redevelopment minister, Arnaud Montebourg, described the involvement of Paris in the potential PSA capital increase as an act of “industrial patriotism.”
