How to sell Ferrari

Fiat Chrysler Automobiles (FCA) has announced shock plans to sell off supercar maker, Ferrari, in an attempt to generate revenue for its €48 billion (£38bn) turnaround plan.

A total of 10 per cent of the company will be offered on the stock market, with the remaining 90 per cent going to existing FCA shareholders. The sale of Ferrari will help support the Group’s long-term success, as it focuses on its more mainstream brands such as Fiat, Jeep and Alfa Romeo.

The Board has authorised FCA management to complete the necessary transactions sometime next year. Although it is unconfirmed, the FCA expects the Ferrari shares to be listed in the US and possibly on a European stock exchange.

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John Elkann, Chairman on FCA, said: “The separation of Ferrari will preserve the cherished Italian heritage and unique position of the Ferrari business and allow FCA shareholders to continue to benefit from the substantial value inherent in this business”

The news comes just weeks after the FCA was floated on the New York Stock Exchange, for the first time since 1998.

FCA CEO, Sergio Marchionne, added: “As we move forward to secure the 2014-2018 Business Plan and work toward maximizing the value of our businesses to our shareholders, it is proper that we pursue separate paths for FCA and Ferrari.

“The Board supports management’s determination that this transaction represents FCA’s best course of action to support the long term success of the Group while at the same time substantially strengthening FCA’s capital base.”