Dongfeng partner PSA's share sale raises billions of yuan for turnaround
French carmaker PSA Peugeot Citroen said the second portion of its share issue, part of a sweeping recapitalization and partnership with Dongfeng Motor Corp., was oversubscribed, with demand reaching 145 percent of the shares offered.
The company said total demand for the 1.9 billion euro (16.18 billion yuan) issue was 2.8 billion euros.
Including the first part of the operation -- which was reserved for the French state and Dongfeng Motor -- it raised about 3 billion euros to fund its "Back in the Race" recovery plan and tie-up with its new China partner.
Under the plan, the French state and Dongfeng each will acquire 14.1 percent of the carmaker, which posted a net loss of more than 7 billion euros for 2012-13, and the Peugeot family will cede control.
The new shares will be traded starting Friday.
Including the first part of the operation -- which was reserved for the French state and Dongfeng Motor -- it raised about 3 billion euros to fund its "Back in the Race" recovery plan and tie-up with its new China partner.
Under the plan, the French state and Dongfeng each will acquire 14.1 percent of the carmaker, which posted a net loss of more than 7 billion euros for 2012-13, and the Peugeot family will cede control.
The new shares will be traded starting Friday.
