LaFerrari-Side-Web
In a move analysts have long expected, Fiat Chrysler Automobiles will spin off the Ferrari brand. The action is being taken to help raise cash for the company's five-year, $4.7 billion investment program.

It's estimated that separating Ferrari from FCA could raise as much as $1.15 billion. FCA owns 90% of the supercar brand.

There will be an initial public offering of 10% of Ferrari's outstanding shares, most likely on the New York Stock Exchange. The balance of FCA's stake will be distributed among its own shareholders.

“I am delighted to have taken this additional step in the development of FCA. Coupled with the recent listing of FCA shares on the NYSE, the separation of Ferrari will preserve the cherished Italian heritage and unique position of the Ferrari business and allow FCA shareholders to continue to benefit from the substantial value inherent in this business” said John Elkann, Chairman of FCA.

FCA CEO Sergio Marchionne added. “Following our acquisition of the minority interest in Chrysler earlier this year, the transformation of Fiat and Chrysler into FCA was completed earlier this month with our debut on the New York Stock Exchange. As we move forward to secure the 2014-2018 Business Plan and work toward maximizing the value of our businesses to our shareholders, it is proper that we pursue separate paths for FCA and Ferrari,” Marchionne continued, “The Board supports management’s determination that this transaction represents FCA’s best course of action to support the long term success of the Group while at the same time substantially strengthening FCA’s capital base.”

Subject to regulatory approvals and other issues, the spin-off should take place next year.