Fiat to increase stake in Chrysler Group LLC
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Fiat has reached an agreement with Chrysler Group LLC
and others regarding the exercise by Fiat of the Incremental Equity Call Option to which Fiat is
entitled under Chrysler’s Operating Agreement.
Under this agreement, Fiat will exercise in full its Incremental Equity Call Option subject to
and concurrently with the closing by Chrysler, in the second quarter of 2011, of a refinancing
transaction in which Chrysler’s US and Canadian government debt is fully repaid.
Upon completion of the transaction, Fiat’s interest in Chrysler will increase by an incremental
16%.
The call option will be exercised at an aggregate price of $1,268 million.
“The transaction that we are announcing today (21st April, 2011),” commented the Chairman
of Fiat, John Elkann, “represents a historic step for Fiat and Chrysler and is a source of great
satisfaction and pride for both.”
“Fiat, together with Chrysler, will create a stronger automobile group, with a full range of
products, present in every market around the world and able to compete with the best.”
“Over the past couple of years, Fiat and Chrysler have worked side by side with commitment
and mutual respect. With the contribution of everyone who works with us and with the full support
of myself and my family, from today this spirit of collaboration will become even stronger, as we
continue to produce appealing, fun, safe and eco-friendly automobiles.”
Fiat CEO, Sergio Marchionne, said: “This is a fundamental step toward completion of the
momentous integration of Fiat and Chrysler, initiated less than 2 years ago, that will result in
the creation of a global automaker.”
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“We have chosen to accelerate the pace to bring about, in the shortest possible time, the
birth of a single group capable of fully leveraging the joint development of the respective
international activities.”
“Chrysler is undergoing an extraordinary industrial and financial turnaround and Fiat is ready
to take control, in order to bring even greater stability and strength to the relationship in the
interests of both.”
“The transaction announced today (21st April, 2011) , together with the expected achievement of
a further 5% interest before year end, will enable us to bring to fruition the vision upon which the
alliance was founded: the creation of an efficient and competitive global automaker, possessing
advanced technologies and the determination to establish itself as a leader in the sector.”
“In so doing, we will be able to guarantee our employees a more certain future and challenging
environment, where cultural exchange and integration, together with a competitive spirit, will provide
the ideal conditions for their professional and personal growth.”
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