According to a source with knowledge of the matter, the largest shareholder in PSA Peugeot Citroen – the Peugeot family – is due for a meeting today ahead of the February 18 board reunion, in which it will decide on how PSA should proceed with two important deals – the one with Dongfeng and the financing alliance with Banco Santander.
A memorandum of understanding (MoU), signed on the recapitalization deal concerning the French state and PSA’s Chinese partner Dongfeng taking share stakes should be announced on Wednesday next to 2013’s results, but it needs to first have Peugeot’s family consent.
The family, through the Peugeot holdings FFP and Etablissements Peugeot Freres has a 25% stake in the automaker, but it effectively commands 38% of the voting rights. According to sources, the deal in which Dongfeng and the French state would bring up to 4 billion euros ($5.5 billion) in fresh capital would also make the family control only a 14% stake, equal to the Chinese and French government.
Other sources familiar with the proceedings also said PSA’s negotiators were in China last week for a new round, in which the companies finally reached an outline deal.
Besides the French/Dongfeng deal, sources also reported that PSA is close to finalizing and announcing a financing deal also, one that would see the company enter 50-50 joint ventures with Spain’s Banco Santander to eventually replace the French state guarantees that helped the automaker survive until now.