Fiat-Chrysler is giving more details about its plans to spin off Ferrari as a separate company. Automotive News reports that the Italo-American auto conglomerate will seek €2.24 billion, or roughly $2.8 billion in cash from the Italian supercar maker before the latter splits off into a separate company in 2015.
Sergio Marchionne, who now stands as Ferrari’s interim chairman after former CEO Luca Cordero di Montezemolo’s fiery September resignation, will list 10 percent of Ferrari on the stock market sometime next year, with 80 percent going to current Fiat-Chrysler investors. The remaining 10 percent belongs to Ferrari Vice Chairman Piero Ferrari.
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It’s all part of Marchionne’s capital-raising maneuverings, aimed at raising nearly $5 billion to help Fiat Chrysler cut debt and back a far-reaching new business plan. In announcing the Ferrari spin-off last month, Marchionne said the move was necessary “to secure the 2014–2018 Business Plan and work toward maximizing the value of our business to our shareholders.”
READ MORE: Why is Fiat Chrysler selling Ferrari? An analyst weighs in
This story originally appeared on roadandtrack.com.
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