Stellantis has agreed a deal to buy back 69.1 million common shares from General Motors (GM) in exchange for more than £910m, plus 1.2m common shares in French vehicle components manufacturer Faurecia.
The repurchase agreement, due to take place today, consists mainly of a €923m (£801m) payment for the shares via equity warrants, plus the aforementioned Faurecia stock.
A €130m (£112m) fee will be also paid for rights to dividends paid by Peugeot SA (PSA) and Stellantis, of which PSA is now part.
The 69.1m common shares – originally issued to GM as part of PSA’s purchase of the Opel and Vauxhall brands in 2017 – represent roughly 2.2% of Stellantis’s total share capital.
The move will allow Stellantis – formed in 2021 as a merger between PSA and Fiat Chrysler Automobiles (FCA) – to consolidate its market position and improve its ability to self-determine. Common shares allow holders to play a role in major company decisions such as board appointments and strategy.
In July, Stellantis agreed a mechanism by which it could repurchase 99.2m common shares – 3.16% of its capital – from Dongfeng Motor International, but at Dongfeng’s discretion.
These moves follow a strong first half of 2022 for Stellantis, during which the conglomerate’s net revenues increased by 17% year on year to €88 billion (£76.3bn). Its profits were up 34%, to €8bn (£6.9bn).
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