The Board of Directors of Fiat Chrysler Automobiles NV ("FCA") (NYSE: FCAU / MTA: FCA) today announced that it has authorized the management of FCA to develop and implement a plan to separate the activities of Magneti Marelli from FCA and distribute to the shareholders of FCA the shares of a new holding company Magneti Marelli. It is expected that the separation will be completed for the end of 2018 or beginning of 2019 and that the shares of Magneti Marelli will be listed on the Milan Stock Exchange.
"The separation will create value for FCA shareholders and at the same time provide the necessary operational flexibility for the strategic growth of Magneti Marelli in the years to come. The spin-off will also allow FCA to further focus on its core portfolio and at the same time improve its capital structure ", said Sergio Marchionne, CEO of FCA. "The separation of FCA and Magneti Marelli is a key ingredient of the 2018-2022 Business Plan to be published in June", Marchionne continued, "the FCA Board believes that this separation is the most appropriate step and benefits Magneti Marelli, to FCA and our shareholders ".
The separation of Magneti Marelli will be subject to the approvals required by law, to legal and tax investigations, to the final approval of the structure of the operation by the Board of Directors of FCA and to any other specific condition of this type of transaction. FCA may, at any time and for any reason, modify or terminate the transaction and there is no assurance regarding its timing or completion.