Ferrari filed for an initial public offering in July 2015 after its parent company Fiat Chrysler Automobiles (FCA) decided to sell a 10pc stake via a public offering and distribute 80pc to its shareholders. The final 10pc is held by Piero Ferrari, son of the founder Enzo Ferrari. Fiat Chrysler Automobiles says the new entity would be known as Ferrari NV. Ferrari, like Fiat Chrysler will be registered in the Netherlands but Ferrari will retain its Italian tax domicile.
This spin-off is part of chief executive Sergio Marchionne’s plan to reduce some of FCA’s €8.6bn of net debt and release some capital for a €48bn investment plan. Amidst speculation about Ferrari’s valuation, Marchionne has said Ferrari is worth “at least” €10bn — more than half of FCA’s market capitalisation of $20bn. Bloomberg analyst based in Milan says the spin-off “will give Ferrari the freedom to develop itself independently” and the controlling family of Ferrari (the Agnelli family) will regain direct control of Ferrari even if FCA decides to merge with another company.
According to the US Securities and Exchange Commission (SEC) filing, Ferrari is targeting shipping 2,000 extra cars by 2019. This is a departure to previous Chairman Luca di Montezemolo’s approach to maintaining exclusivity of its vehicles by capping annual production of its cars to 7,000 units.
FCA’s 2H2015 Results state that the New York Stock Exchange listing of the Ferrari shares is expected in the last quarter of 2015 and the remaining shares are to be distributed in January 2016. (UBS has been appointed the global co-ordinator of the listing, alongside Bank of America Merrill Lynch and Santander). Therefore Marchionne will have to wait till after the spin-off to proceed with an ambitious bid for General Motors.
According to Bloomberg, Mr Marchionne has been campaigning for consolidation in the automotive industry; arguing that “automakers waste money by developing multiple versions of the same technology and so should merge.” Marchionne believes that merging with GM, the world’s second-largest car manufacturer could generate $30 billion a year in EBITDA. However GM is yet to comment publicly on Marchionne’s advances since their CEO Mary Barra said in June that GM is busy “merging with ourselves”.
Formula One connection
Marchionne who amongst his numerous roles, acts as Ferrari’s Chairman attended the Italian Grand Prix at Monza, meeting with the Italian Prime Minister and lending his support to the campaign to keep Monza on the calendar. Also, Italian publication Autosprint reports that he met Dr Dieter Zetsche from Daimler (Mercedes), with whom he discussed the future of F1’s rules. “It is a delicate and complicated subject. We will meet again in London soon.”