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Cerberus Takes Over Majority Interest in
Chrysler Group and Related Financial Services
Business for EUR 5.5 Billion ($7.4 billion)
from DaimlerChrysler
Affiliate of Cerberus to acquire 80.1%
equity interest in new company Chrysler
Holding LLC; DaimlerChrysler AG to
retain 19.9%
Obligations for pensions and healthcare
costs to be retained by Chrysler
companies
Transaction expected to result in net cash
outflow of EUR 0.5 billion for
DaimlerChrysler
DaimlerChryslerâ ™s net profit
according to IFRS in 2007 to be reduced
in a range of EUR 3-4 billion
Equity ratio of DaimlerChryslerâ ™s
industrial business is expected to be over
40% by the beginning of 2008
Extraordinary Shareholdersâ ™ Meeting
to decide on change of name to Daimler
AG
DaimlerChrysler CEO Dieter Zetsche on
the realignment of DaimlerChrysler AG:
"We will be the leading manufacturer of
premium vehicles and a provider of
premium services in every market
segment we serve worldwide."
UAW President Ron Gettelfinger: "The
transaction with Cerberus is in the best
interests of our UAW members, the
Chrysler Group and Daimler."
Cerberus Capital Management Chairman
John Snow: "Cerberus believes in the
inherent strength of U.S. manufacturing
and of the U.S. auto industry. Most
importantly, we believe in Chrysler."
Stuttgart, Germany, May 14, 2007
The Board of Management of DaimlerChrysler
AG (stock-exchange abbreviation DCX) has
today decided, subject to the approval of the
Supervisory Board, on the future concept for
the Chrysler Group and the realignment of
DaimlerChrysler AG. Completion of the
transaction is subject to the satisfaction of
customary closing conditions, including the
receipt of regulatory approvals and Cerberus
financing arrangements.
Details will be explained at a press conference
in Stuttgart today at 2 p.m.
Structure of the transaction
An affiliate of private equity firm Cerberus
Capital Management, L.P., New York, will
make a capital contribution of EUR 5.5 billion
($7.4 billion) in return for an 80.1% equity
interest in the future new company, Chrysler
Holding LLC. DaimlerChrysler will hold a
19.9% equity interest in the new company.
Chrysler Holding LLC will hold 100% each of
the future Chrysler Corporation LLC, which
produces and sells Chrysler, Dodge and
Jeep® vehicles, and the future Chrysler
Financial Services LLC, which provides
financial services for these vehicles in the
NAFTA region.
Of the total capital contribution of EUR 5.5
billion, EUR 3.7 billion will flow into the
industrial business (Chrysler Corporation LLC)
and EUR 0.8 billion will flow into the financial
services business in order to strengthen the
equity base of both businesses.
DaimlerChrysler will receive the balance of
EUR 1.0 billion. In addition, DaimlerChrysler
will grant a loan of EUR 0.3 billion to Chrysler
Corporation LLC.
According to the agreement, upon the closing
of the transaction, DaimlerChrysler will
transfer the industrial business of the Chrysler
Group completely free of debt. Due to the
Chrysler Groupâ ™s anticipated negative cash
flow until closing in connection with its
restructuring plan, the transaction will give rise
to a cash outflow of EUR 1.2 billion for
DaimlerChrysler. The overall net cash outflow
resulting from the transaction will therefore be
EUR 0.5 billion. In addition, DaimlerChrysler
will have to discharge long-term liabilities of the
Chrysler Group in connection with the
transaction. This will result in prepayment
compensation of approximately EUR 650
million, to be borne by DaimlerChrysler. The
usual transaction costs will also be incurred.
The Chrysler Groupâ ™s financial obligations
for pension and healthcare benefits towards
its employees and the employees of the
financial services business related to the
Chrysler Group will be retained by the Chrysler
companies. The pension plans are significantly
over-funded at present.
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Quelle:
http://www.daimlerchrysler.com/dccom/0-5-7171-1-858192-1-0-0-0-0-0-87-7164-0-0-0-0-0-0-0.htmlMan sollte außer den Darwin-Awards auch PISA-Awards vergeben.
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