cars news 10: Ferrari has Officially Separated From Fiat Chrysler Automobiles

Only a month after we reported that Fiat Chrysler Automobiles (FCA) would spin off Ferrari NV to help pay off some of its $10.9 billion debt, the automakers have announced that the separation is complete. The deal was completed January 3, 2016.

As part of the deal, FCA shareholders are entitled to one common share of Ferrari for every 10 FCA common shares already held. Additionally, FCA shareholders that are part of the company’s loyalty voting program will also receive Ferrari special voting shares in that same 1:10 ratio. The nearly 56.5 million outstanding Ferrari special voting shares are unlisted and cannot be traded according to the deal.

There are nearly 189 million outstanding Ferrari common shares following the separation versus nearly 194 million issued common shares. In October, FCA sold 10 percent of Ferrari shares in a New York initial public offering, which raised $1 billion for the company. Another 10 percent of Ferrari shares belong to Piero Ferrari, the son of founder Enzo Ferrari.

Ferrari common shares will continue to trade on the New York Stock Exchange (NYSE) and Mercato Telematico Azionario (MTA) under the RACE ticker symbol.

Source: FCA