/ Citroen, Industry, News, Peugeot / PSA signed the Dongfeng deal

PSA signed the Dongfeng deal

Linked In Share
PSA signed the Dongfeng deal

In a move that would bring to end to the two centuries of Peugeot family control over PSA Peugeot Citroen, the troubled French carmaker has signed on the long reported capital increase deal with Chinese partner Dongfeng.

According to PSA, which is currently Europe’s second biggest carmaker, the company, Dongfeng and the French government have all signed – just as reported – a non-binding outline agreement, that would bring fresh capital of 3 billion euro ($4.1 billion) to PSA.

According to analysts, both the current Chief Executive Officer Philippe Varin and Carlos Tavarez, its designated successor still need to explain how the long debated tie-up will help PSA improve its position.

“Expectations are running high,” London-based ISI Group analyst Erich Hauser said in a note. “PSA (Peugeot) needs to show a new equity story to keep investors interested.”

Sources have disclosed that under the deal, Dongfeng and the French state will each bring around 800 million euros, which they will use to acquire 14% stakes in the automaker, in a reserved share sale and rights issue, with a preferential price of 7.50 euro a share – around 40% discounted from the current market valuation.

The remaining amount to the intended 3 billion euro ($4.1 billion) will be raised through warrants given at the same preferential price to the existing shareholders of PSA. Because of the deal, Peugeot’s family 25.4 % stake and 38 % of voting rights would be diluted to the same amount of Dongfeng and the French state – short of the one third necessary for veto rights.

Via Reuters

by Aurel Niculescu (my Google+) - Wednesday, February 19th, 2014 - filed under Citroen, Industry, News, Peugeot. Image credit: .
Linked In Share
Related Articles
deal dongfeng france psa


Discuss: PSA signed the Dongfeng deal

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

Sutil says feet planted despite rumours
Sutil says feet planted despite rumoursJul.24 (GMM/Inautonews.com) Adrian Sutil on Thursday insisted he has no intention of losing his place in formula one. The ...
Mercedes-Benz AMG GT to be unveiled on September 9
Mercedes-Benz AMG GT to be unveiled on September 9The newest sports car produced by Mercedes-Benz will be officially unveiled on the 9th of September. Following several spy ...
[VIDEO] Mercedes-Benz S500 Plug-in Hybrid gets new promo
[VIDEO] Mercedes-Benz S500 Plug-in Hybrid gets new promoMercedes-Benz has released a new promotional video with the newly unveiled S500 Plug-in Hybrid. The German based automaker ...
2017 Seat Ibiza teased
2017 Seat Ibiza teasedThe Spanish based automaker Seat has released the first sketch with the new generation of the Ibiza which is said to go on sale ...
Volkswagen Golf GTD Variant spied
Volkswagen Golf GTD Variant spiedVolkswagen is currently testing out the wagon version of the Golf GTD as the model in question has been caught on camera by our ...
[Video] Mercedes simulator trains you to become the better driver
[Video] Mercedes simulator trains you to become the better driverWhile life-sized simulators are generally associated with the training of plane pilots, the machines have been successfully ...
2015 COTY candidates announced
2015 COTY candidates announcedThe first candidates of the 2015 Car of the Year award have been recently announced but the winner will be presented next year, ...
Honda’s Mobilio jumps from Indonesia to India
Honda’s Mobilio jumps from Indonesia to IndiaThe Japanese automaker aims to improve its market share in the huge India by porting a model that has become an outstanding ...
New British sports car teased – Ant-Kahn Evanta Barchetta
New British sports car teased – Ant-Kahn Evanta BarchettaA brand new British sports car is about to hit the market with its appealing looks under the Ant-Kahn Evanta Barchetta name. The ...
General Motors – 6 new recalls announced
General Motors – 6 new recalls announcedGeneral Motors is continuing to announce new recalls with six separate campaigns which are covering nearly three quarters of a ...
Chevrolet debuts its Manchester United sponsorship in the US
Chevrolet debuts its Manchester United sponsorship in the USGeneral Motors decided that a shirt sponsorship deal for the next seven years with England’s Manchester United is well worth ...
2014 Renault Megane introduced in Australia
2014 Renault Megane introduced in AustraliaRenault has recently announced the launch of the updated Megane across the Australian continent, where the cheapest version is ...
Recall roundup: Mercedes-Benz SLK and SL for Takata airbags
Recall roundup: Mercedes-Benz SLK and SL for Takata airbagsThe German based automaker Mercedes-Benz has recently issued a recall for the SLK and for the SL roadsters because of the Takata ...
Mercedes-Benz to further cut costs, even as profit beats estimates
Mercedes-Benz to further cut costs, even as profit beats estimatesDaimler AG announced a second-quarter profit that positively outpaced analyst forecasts, thanks to increased deliveries from the ...
[VIDEO] Hear the 2015 Ford Mustang EcoBoost
[VIDEO] Hear the 2015 Ford Mustang EcoBoostAnother video upload with the brand new 2015 Ford Mustang is partially revealing the sound of the EcoBoost four-cylinder ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

Mercedes-Benz-AMG-GT-1
VW Golf GTD Variant 01
bmw m4 coupe tuning vorsteiner 1
2015 toyota yaris facelift united states 1
mercedes-benz a45 amg tuning vath 1
2015 porsche cayenne facelift 1
2015 hyundai tucson 2
Smart Brabus 01
Audi Q7 01
Mercedes ML Facelift 03
Jaguar XJ Facelift 01
Honda NSX 01

More automotive from inautonews
The newest sports car produced by Mercedes-Benz will be officially unveiled on the 9th of September. Following several spy photos and teaser images with it, the new Mercedes-Benz AMG GT is about to be officially unveiled. According to the German automotive media, the model in question will be ...
read more
Inautonews Editors Section
Review – German GP 2014
Review – German GP 2014Taking Rosberg’s easy win out of the picture, the German GP was truly spectacular, full of wheel-to-wheel racing, some of the overtakes backfiring ...
Britain and Germany go to war
Britain and Germany go to war1995, the German Grand Prix at the old Hockenheimring. Damon Hill leads at the end of lap one ahead of Schumacher but loses the car at the first ...
Racing tracks – sleeping pill or energy drink?
Racing tracks – sleeping pill or energy drink?The racing weekend took us across the whole world last weekend, with dull or spectacular racing being influenced not only by the quality of the ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety General Motors – 6 new recalls announcedGeneral Motors is continuing to announce new recalls with six separate campaigns which are covering ... Recall roundup: Mercedes-Benz SLK and SL for Takata airbagsThe German based automaker Mercedes-Benz has recently issued a recall for the SLK and for the SL ...
Safety Section