Shareholders of Fiat Chrysler Automobiles NV will see a lower-than-expected dividend ahead of the Italian-American carmaker’s merger with its French rival, Groupe PSA, as the COVID-19 pandemic has put pressure on financial liquidity.
The boards of directors of the two companies have agreed to modify their combination agreement reached last December in order to preserve the 50-50 balance and the economic value of the merged entity, which will be known as Stellantis, FCA and PSA said Monday in a joint statement. The deal is still expected to be completed in the first quarter of 2021.
Fiat Chrysler will distribute a dividend of $ 3.4 billion to shareholders before the merger instead of the previously agreed $ 6.5 billion. However, PSA will delay the distribution of its 46% stake in automotive supplier Faurecia until the deal is completed. The shareholders of the two companies will receive 23% of distributions in Faurecia.
Based on market conditions and performance, the companies said boards may also consider a distribution of $ 593 million to shareholders of each company before the merger or an allocation of $ 1.2 billion per. the following.
The measures aim to “ensure that Stellantis has all the resources necessary to apply its unique strengths, creative energies and many opportunities to create superior value for all of our stakeholders,” said FCA CEO Mike Manley, in a press release.
Automakers also increased their forecast of annual operating cost savings for the combination to $ 5.9 billion, up from initial estimates of $ 4.4 billion after “significant progress” by a company. joint team working on the agreement. plant closures due to the merger, Fiat Chrysler spokesman Jeff Bennett confirmed.
Fiat Chrysler shares rose 2.4% after the market on Monday after the announcement.
What Are The Main Benefits Of Comparing Car Insurance Quotes Online
LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos
to request, modification Contact us at Here or [email protected]