Date
20 August 2017

Peugeot nearing deal on recapitalization, WSJ says

PSA Peugeot Citroën is moving closer to a 3 billion euro (US$4.06 billion) deal with its Chinese partner and the French government over a recapitalization plan, the Wall Street Journal reported Monday. The French carmaker is pursuing talks with China’s Dongfeng Motor Co. and the French government over a capital boost, the report said. The company was quoted as saying that all shareholders would be given an opportunity to buy some of the newly issued shares at the same price as Dongfeng and the French state. A deal is likely to be announced when the company unveils its annual results on Feb. 19. The central scenario under discussion calls for Dongfeng and the French state to buy new shares at 7.5-8.0 euro apiece, stumping up about 800 million euro each, sources were quoted as saying. The Peugeot family, which controls the firm, would pump in around 100 million euro, it said. 

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RC

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