VEBA values its share of Chrysler at $3.6 billion image

The United Auto Workers-affiliated healthcare trust thinks its stake in Chrysler Group LLC was worth $3.6 billion in 2012, rising from $2.7 billion the year before.

The UAW Chrysler Health Care Trust considers its assets to have increased by $1.58 billion last year, with at least 50% coming from the value increase of its Chrysler holding. The trust’s net assets went up by 18% in 2012 to $10.3 billion, according to its 2012 financial statement, filed Friday. Almost $900 million of the increase was due to an increase in the value it thinks its Chrysler stake is worth.

As we all know from the already on its way ensuing scandal, the healthcare trust, which is legally a voluntary employees beneficiary association (VEBA), currently holds 41.5% of Chrysler, and Sergio Marchionne, chief executive of both Fiat and Chrysler, wants Fiat to acquire from Chrysler’s healthcare trust the remaining shares of the company.

Under Marchionne, Chrysler has managed to stage an unlikely comeback that has pushed its valuation to around $10 billion, according to some analyst estimates. The U.S. automaker is now providing relief for Fiat’s bottom line, rather than the other way around.

Chrysler’s success has complicated Marchionne’s efforts to buy out the remaining stake from the healthcare trust. This is why a $5 billion price tag has been proposed by adviser Brock Fiduciary, and it stands as the highest possible payout under the terms of the bankruptcy agreement.

Via Reuters, Detroit Free Press