According to PSA Peugeot Citroen, the company’s share issue was an all out success, with investors oversubscribing the second part of its share issue, as total demand actually reached 145% of the stakes on purchase.
The battered French carmaker, which has moved to increase capital because of its dire need of a cash infusion, is now three ways controlled by the Peugeot founding family, which reduced its stake to 14%, to match the ones purchased by China’s Dongfeng and the French state. The first part of the share issue was reserved to the latter duo, while the second part was open to remaining investors. According to PSA, the demand for the 1.95 billion euro ($2.7 billion) issue was actually of 2.82 billion euros. The successful second share issue completed the needed 3 billion euros fund raising needed to sustain the recovery strategy devised by the new CEO Carlos Tavares, dubbed “Back in the Race”.
In other news, PSA’s CEO, Carlos Tavares, has announced the Mitsubishi electric partnership would go under scrutiny in the following period.
“It’s a strategy that will be rebuilt in the next 12 months, and we will consider whether we develop them alone, in partnership, and where we will build them,” the CEO said.
Tavares noted that currency factors, like the following strength of the yen – which was severely down in the last 12 months – would be among the important issues to consider. Tavares spoke about the electric partnership during a parliamentary economic affairs committee, stressing that PSA needs to devise a strategy that would see the company still offering electric cars to the public.