Stock Markets 2 hours ago (Sep 13, 2022 07:42PM ET)
© Reuters. The logo of Stellantis is seen on a company’s building in Velizy-Villacoublay near Paris, France, February 23, 2022. REUTERS/Gonzalo Fuentes
(Reuters) – American-Italian-French automaker Stellantis NV said on Tuesday it will buy back shares worth about 923 million euros ($919.31 million) from General Motors Co (NYSE:).
Stellantis said it would buy back about 69.1 million common shares, or about 2.2% of the company’s share capital.
General Motors currently holds this stake in Stellantis in warrants, which it will convert into equity shares for Stellantis to purchase on Thursday, according to the statement.
GM was issued these warrants by Peugeot SA (EPA:) in 2017 as part of the U.S.-based automaker’s sale of Opel-Vauxhall business. In 2021, Peugeot (OTC:) completed its own merger with Fiat Chrysler to become Stellantis.
In addition to the price for shares, Stellantis will also pay GM in 1.2 million common shares of car parts maker Faurecia SE and about 130 million euros in cash for rights to dividends paid by Peugeot and Stellantis.
($1 = 1.0040 euros)