Following its initial public offering (IPO), Iconic sports-car maker Ferrari, has now officially parted ways from its parent company Fiat Chrysler Automobiles (FCA).
As part of the deal, FCA's shareholders received one Ferrari share for every 10 Fiat Chrysler shares they owned. Special voting shares are being distributed in the same proportions to certain shareholders as well.
Fiat Chrysler distributed its 80 per cent stake in Ferrari to shareholders on Sunday, ending 30 years of exclusive control over the maker of the iconic cars that on average sell for about $273,000.
10 per cent were floated as part of the firm’s IPO and the remaining 10 per cent is held by Enzo's son Piero Ferrari, who serves as Vice Chairman of the company.
“From the moment we announced the split from FCA, a journey came to an end,” said FCA's Chief Executive Sergio Marchionne. “But the truth is that today another big chapter is beginning. This listing marks Ferrari’s independence, which is essential in maintaining its development and potential,” he added, promising customers ‘ever-more exclusive models.’
Italy-based Agnelli family owned Exor, FCA’s biggest shareholder has received the most number of shares in Ferrari, so the controlling authority of Ferrari remains pretty much unchanged, despite the spinoff. Agnelli family that’s currently headed by Chairman John Elkann holds the largest stake in FCA, therefore, it is expected it to continue controlling the largest portion of Ferrari shares as well.
Ferrari had accounted for more than 10 per cent of FCA’s total profit. With the brand now out of the group, FCA’s shares opened almost a third lower than the most recent closing price on Monday. Ferrari’s share price was also slightly lower.
BW Reporters
The author is Senior Correspondent with BW Businessworld
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