Tuesday, September 13, 2022

Stellantis to buy back shares worth about $920 million from GM

Tue, September 13, 2022

The logo of Stellantis is seen on a company's building in
 Velizy-Villacoublay near Paris

(Reuters) - American-Italian-French automaker Stellantis NV said on Tuesday it will buy back shares worth about 923 million euros ($919.31 million) from General Motors Co.

Stellantis said it would buy back about 69.1 million common shares, or about 2.2% of the company's share capital.

General Motors currently holds this stake in Stellantis in warrants, which it will convert into equity shares for Stellantis to purchase on Thursday, according to the statement.

GM was issued these warrants by Peugeot SA in 2017 as part of the U.S.-based automaker's sale of Opel-Vauxhall business. In 2021, Peugeot completed its own merger with Fiat Chrysler to become Stellantis.

In addition to the price for shares, Stellantis will also pay GM in 1.2 million common shares of car parts maker Faurecia SE and about 130 million euros in cash for rights to dividends paid by Peugeot and Stellantis.

No comments:

Post a Comment