Dongfeng Motor to sell Stellantis shares for €732 million to recover

Beijing (Gasgoo)- Dongfeng Motor Group (DFG), the Hong Kong-listed subsidiary of Dongfeng Motor Corporation, announced its decision to sell €732 million worth of 40,000,000 Stellantis shares through DFG’s subsidiary DMHK.

Photo credit: Dongfeng Motor

According to the announcement, the said shares will not affect the company’s income statement. The earnings from the sale will be put towards Dongfeng Motor’s primary business.

At this stage, DFG has already reached an agreement with BNP Paribas for the latter to represent as its exclusive global coordinator and bookkeeping administrator. BNP Paribas has finished corresponding book-building work, looking for qualified international investors for the 1.28% Stellantis shares. for DFG.

The shares are priced at €18.30 per share，11% less than Stellantis’ closing price at the end of the day before. The settlement will be completed around January 26th, 2022. After the placing, DFG will still own 3.2% of Stellantis’ share capital.

Additionally, Dongfeng Motor Corporation reported an annual sales volume of 2.7751 million vehicles in 2021, down 3.25% from a year ago. Nonetheless, the auto group still set an ambitious annual sales target of 3.471 million vehicles for 2022, more than the group’s record of 3.28 million in 2017.