Stellantis Group (hereinafter referred to as "Stellantis") and a subsidiary of Dongfeng Motor Corporation Limited (hereinafter referred to as "Dongfeng Group")—Dongfeng Motor (Hong Kong) International Limited, have confirmed a transaction wherein Stellantis will repurchase 50 million ordinary shares from Dongfeng Group. These shares constitute 1.58% of Stellantis' share capital before cancellation, with a total consideration of €934 million. Stellantis intends to cancel the repurchased shares.
In accordance with the Share Repurchase Framework Agreement signed by both parties on July 15, 2022, Dongfeng Group recently made an offer to Stellantis, specifying the quantity of Stellantis ordinary shares it intends to sell and potential transaction dates. Stellantis exercised its rights and accepted the offer.
Pursuant to the previously signed Share Repurchase Framework Agreement, the transaction price is determined as the average closing price of Stellantis shares on the Milan Stock Exchange for the five trading days preceding the day on which Dongfeng Group made the offer. The offer date from Dongfeng Group was November 21, 2023.
Following the completion of this transaction, Dongfeng Group will hold 49.2 million ordinary shares of Stellantis, representing 1.58% of Stellantis' share capital. The Share Repurchase Framework Agreement previously entered into by both parties remains valid for these 49.2 million ordinary shares.
This share repurchase transaction by Stellantis from Dongfeng Group is carried out in accordance with the authority granted at the Stellantis Shareholders' Meeting on April 13, 2023.
It is noted that this share repurchase agreement with Dongfeng Group will not impact the €1.5 billion share repurchase program announced by Stellantis on February 22, 2023, to be implemented through open market transactions by the end of 2023.
