Fiat Chrysler Automobiles chief executive officer Sergio Marchionne has recently updated his controlling stake in the world’s seventh largest automaker.
He now has command over almost one percent of the voting stake thanks to beneficial strategies brought in by stock grant plan, with the company now preparing to become even more interesting to investor as it readies the spin off of luxury division Ferrari. Thanks to the updated stake, Marchionne is now one of the biggest individual shareholders in FCA, a company that has seen its share price jump 75 percent after Ferrari’s spin off was announced back in October 2014. That’s because investors can only bid for 10 percent of Ferrari’s shares, offered through an upcoming initial public offering – the rest (save for another 10% that belong to Ferrari heirs) being distributed among existing FCA stakeholders as a proportion of their investment. That also benefits Marchionne, which is also chairman of Ferrari.
Analysts also believe the Ferrari – FCA divorce can be an asset for a future partnership or tie-up between Fiat Chrysler Automobiles and another major automaker, with the industry on a never before seen drive towards consolidation. Marchionne now has control over 14.4 million common shares, according to a filling with Dutch market regulator AFM, being recently granted 2.3 million shares in the final stage of a stock grant plan sanctioned back in 2012. At the current closing price, the shares could bring in for the chief executive a total value of 31.2 million euros ($35 million) – which equates to a 0.85 percent voting stake if we take into account FCA’s total share capital of 1.69 billion shares.