PARIS -- Stellantis shareholders will meet March 8 to approve the distribution of the group’s shares in supplier Faurecia, in which PSA Group once held a controlling 46 percent stake.
Stellantis, the result of a 50-50 merger between PSA and Fiat Chrysler Automobiles, now holds 39 percent of the outstanding share capital of Faurecia. PSA sold 7 percent of the supplier’s share capital in October for about 308 million euros, a move aimed at avoiding antitrust issues.
Faurecia had a market capitalization of 6 billion euros on Monday, based on a share price of 43 euros. Stellantis shareholders will receive cash from PSA's October sale of 7 percent of its stake as well as the shares from the remaining 39 percent, for a total of about 2.64 billion euros.
The date of distribution and other details will be decided after the March 8 shareholders’ meeting, Stellantis said.
The original combination agreement between PSA and FCA, dating to December 2019, called for Faurecia’s shares to go to PSA investors. Separately, FCA shareholders would get a payout of 5.5 billion euros ($6.5 billion) after the merger.
But the drop-off in business last year attributed to the coronavirus crises led the automakers to change the terms, with former FCA shareholders now receiving 2.9 billion euros in cash, but half of Stellantis’ stake in Faurecia.
PSA added control of the supplier in 1998 after its in-house supply brand, ECIA, took over the supplier Bertrand Faure, creating Faurecia.
Faurecia, which is based outside Paris, ranks No. 8 on the Automotive News Europe list of the top 100 global suppliers with worldwide sales to automakers of $19.9 billion in 2019.
It has four main divisions are seating, interiors, clean mobility and Faurecia Clarion (electronics).