FCA: looks like three steps (i) place 10% of Ferrari and distribute remaining stock to Fiat shareholders (ii) raise 2.5bn USD mandatory convertible (iii) FCA anticipates that it will offer up to 100 million FCA common shares including 35 million common shares currently held in treasury by FCA and approximately 54 million common shares that will be issued by FCA to replenish the share capital canceled following the exercise by Fiat S.p.A. Call at 1400
On Ferrari:
-Broker estimates average value between €3.3.bn and €5.4bn with a median of €4.3bn
-EBITDA at 10000 units p.a. is well in excess of €1bn
Fiat owns 90% of Ferrari, with founder Pietro Ferrari owning 10%. Fiat will first sell 10% in an IPO to raise cash, then distribute proportionally the remianing 80% to its own shareholders (like a dvd in-specie). Exor will end up with c.24% of the equity (double voting rights). The Fiat rump is going to be left even more leveraged, having distributed the most valuable asset, but the proceeds from 10% sale and the $2.5bn mandatory convertible will help.