According to two people with knowledge of the matter, the family controlling PSA Peugeot Citroen has now agreed to sell company shares to Chinese Dongfeng Motor and the French state as part of the widely discussed plan to raise 3 billion euros ($4.1 billion).
The people, who asked not to be identified because the matter is still a secret, said the two boards that run the Peugeot family two holding companies — EPF and FFP — have signed off this week on a two-step capital increase.
As the family members control 25.5 % of Peugeot’s capital and 38.1 % of the voting rights, their support is crucial for the plan co come through. Just a reminder, PSA last week only announced that the possibility of participating in a broader rights offering is would be considered after first Dongfeng and the French government will contribute with funds through a sale reserved for them.
“Now the main question is whether this whole deal will pass the vote of the shareholders,” said Philippe Houchois, a London-based automotive analyst at UBS AG. “Will the family be able to force the approval of the deal on the others?”
Jean-Baptiste Thomas, a spokesman at the automaker said that PSA needs to rally the support of 66 % of those attending the annual meeting before being allowed to move forward with the capital increase.