FRENCH carmaker PSA Peugeot Citroen announced the terms of a €1bn (£832m) share sale to fund its alliance with General Motors, offering a big discount to draw in funds for overseas expansion and new models.
GM and Peugeot announced an alliance last week to co-operate on developing new cars with the aim of saving $2bn (£1.27bn) annually via pooling purchasing and research and development. The French carmaker hopes the deal will help it step up expansion in lucrative new markets as Europe’s car market struggles.
Peugeot said yesterday it would offer 16 new shares for every 31 existing shares held by investors at €8.27 each, a 42 per cent discount to its closing stock price on Monday. The deal will see GM take a seven per cent stake in Peugeot for roughly €320m.