Photo: Stellantis
Stellantis buys back $922 million’s worth of shares from General Motors, the company announced in a press release. The 69.1 million repurchased common shares amount to approximately 2.2% of Stellantis’s entire share capital.
In 2017, GM sold its Opel/Vauxhall business to the French group PSA (now part of Stellantis) in exchange for $2.32B (€2.2B). As part of the agreement, PSA issued GM equity warrants of some $685M (€650M). The values in this paragraph are based on March 1, 2017, USD-Euro exchange rate, 1 USD = 0.95 EUR.
According to the PSA-GM deal terms, “these warrants have a nine-year maturity and are exercisable at any time in whole or in part commencing 5 years after the issue date, with a strike price of €1" ($1.05 at the moment – editor’s note).
In 2021, PSA joined Fiat-Chrysler in what has now become Stellantis. With General Motors exercising its mentioned equity warrants right and becoming a Stellantis shareholder of over 69 million shares, today’s transaction is not very surprising.
Apart from the primary buyback value of $923M, Stellantis will issue General Motors 1.2 million common shares in the components manufacturer Faurecia, adding some $17M to the repurchase. On September 14, 2022, the average value for one Faurecia share was $14.21 (€14,22). In addition, a further $129.95M in cash (€130 million at the September 2022 exchange rates) will compensate GM’s rights to dividends paid by PSA and Stellantis.
Under the Share Repurchase Agreement (SRA) terms, the issuing and subsequent repurchasing of Stellantis common shares will take place on September 15. The total value of all the common shares - $922.878.526,59, or €923,247,678 - is based on the average price of one Stellantis common share on the regulated market of Euronext in Milan over the last five trading days.
According to the press note from the automotive group, “this purchase of Stellantis common shares by Stellantis from GM will be carried out under the authority granted by the general meeting of April 13, 2022.”
According to the PSA-GM deal terms, “these warrants have a nine-year maturity and are exercisable at any time in whole or in part commencing 5 years after the issue date, with a strike price of €1" ($1.05 at the moment – editor’s note).
In 2021, PSA joined Fiat-Chrysler in what has now become Stellantis. With General Motors exercising its mentioned equity warrants right and becoming a Stellantis shareholder of over 69 million shares, today’s transaction is not very surprising.
Apart from the primary buyback value of $923M, Stellantis will issue General Motors 1.2 million common shares in the components manufacturer Faurecia, adding some $17M to the repurchase. On September 14, 2022, the average value for one Faurecia share was $14.21 (€14,22). In addition, a further $129.95M in cash (€130 million at the September 2022 exchange rates) will compensate GM’s rights to dividends paid by PSA and Stellantis.
Under the Share Repurchase Agreement (SRA) terms, the issuing and subsequent repurchasing of Stellantis common shares will take place on September 15. The total value of all the common shares - $922.878.526,59, or €923,247,678 - is based on the average price of one Stellantis common share on the regulated market of Euronext in Milan over the last five trading days.
According to the press note from the automotive group, “this purchase of Stellantis common shares by Stellantis from GM will be carried out under the authority granted by the general meeting of April 13, 2022.”
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