French car maker PSA Peugeot Citroen is planning a 3 billion euro (US$4.08 billion) capital boost in Chinese partner Dongfeng Motor Co. and deeper business ties, the Wall Street Journal reported Thursday. The proposal will be approved by the board at a Feb. 18 meeting. The company, which said last month that it was holding talks with Dongfeng and the French government over a possible capital increase, said its board met Wednesday and expressed full support for the plan. The proposal calls for Dongfeng and the French state to contribute between a third and half of the 3 billion euros Peugeot wants to raise, the report said, citing people familiar with the negotiations. The Peugeot family, the group’s largest shareholder with a 25.4 percent stake, will spend 80 million euros to 120 million euros to buy some of the newly issued shares. The company will make an additional public rights issue to make up the required amount, the report said.
– Contact HKEJ at [email protected]