Dongfeng Motor Hong Kong has sold part of its stake in Stellantis for approximately €600 million ($710 million).
Prior to the formation of Stellantis through a merger between Fiat Chrysler Automobiles and PSA Group, former PSA investor Dongfeng was required to sell roughly 36 million shares in the new group by the end of 2022. The Chinese automaker recently confirmed it had done just that, selling 36.1 million Stellantis shares through an accelerated bookbuilding process (ABB) at a price of €16.65 ($19.67) each.
Reuters notes that no information has been provided about who purchased the shares.
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Dongfeng initially purchased its shares in Fiat Chrysler Automobiles in 2014 as part of a capital raise that helped to save the car manufacturer from bankruptcy. While it now owns 36.1 million fewer shares, Dongfeng still has a 4.5 per cent stake in Stellantis. It cannot sell any more shares for the following 90 days.
The sale of Dongfeng’s shares will also allow the Peugeot family to increase its 7.2 per cent stake in Stellantis by an additional 1.5 per cent. It can purchase shares on the open market, from France’s state lender Bpifrance, or from Dongfeng, but it is unclear if it has yet to purchase this additional 1.5 per cent stake.
Dongfeng acts as an important partner for Stellantis in China and operates a joint venture with it which sold a touch under 50,000 vehicles between January and July.
Dongfeng Warrior M50