Fiat Chrysler will be spinning off their Ferrari group in order to get rid of $894 million worth of debt burdening the company. In the deal laid out in an SEC filing, Ferrari will pay Fiat Chrysler $2.8 billion in return for the loss of approximately $2.1 billion in Ferrari revenues and Ferrari’s current debt of $167 million.
In addition to spinning off Ferrari, Fiat Chrysler CEO Sergio Marchionne has said that he will sell 10% of the company in a public offering and distribute the remainder of Fiat Chrysler’s Ferrari’s holdings to its company’s shareholders.
On a side note: Marchionne just bought 1000 shares of Philip Morris International – the main sponsor of Ferrari in Formula One racing and whose main F1 race sponsor executive was recently made team principal at Ferrari.
