PSA and Dongfeng sign capital tie-up deal

Details of PSA in Chinese

东风8亿欧元入股PSA 将设出口销售新公司

2月19日,东风集团(00489.HK)发布公告,称与PSA(标致雪铁龙)、法国政府、标致家族订立谅解备忘录。公司表示有意认购PSA的增发股份及配售股份,总代价约8亿欧元(下同)(近85.4亿港元),且预期法国政府亦会以同等条件认购PSA的定向增发及供股。

PSA unveils Dongfeng deal with 2013 loss

PARIS (Reuters) — PSA/Peugeot-Citroen today unveiled a 3 billion euro ($4.1 billion) capital tie-up with China’s Dongfeng Motor Group and said the cash injection would buy time for a recovery after the company posted a further loss for 2013.

Dongfeng and the French state will each pay 800 million euros for 14 percent of the carmaker to match the founding Peugeot family’s reduced holding, PSA said today in a statement, confirming earlier reports.

PSA said its full-year net loss narrowed to 2.32 billion euros from 5.01 billion in 2012, when the bottom line was hit by asset writedowns. Sales fell 2.4 percent to 54.09 billion euros.

The company unveiled new goals for its partnership with Dongfeng but warned that it may not halt losses until 2016 — a year later than initially promised.

“Everything is in place to give Peugeot a new lease of life as a major international carmaker,” Chief Financial Officer Jean-Baptiste de Chatillon said on a conference call.

“We have the products, the teams, the know-how and now we have a new balanced and stable ownership,” he said.

The loss at PSA’s core auto division narrowed 30 percent to 1.04 billion euros — and net debt rose by about the same figure to 4.15 billion — as drastic investment cuts failed to halt the red ink.

But operational cash consumption came in at 426 million euros, outperforming the company’s goal of cutting the previous year’s 3 billion cash burn at least by half.

PSA’s net loss was deepened by an emerging market currency plunge.

VIDEO: PSA CEO Varin talks about Dongfeng deal, Europe, future plans

PSA Chairman urged to scrap Dongfeng deal