PSA Completes New-Shares Sale

PSA Peugeot Citroen has successfully raised just under €2 billion by selling 289 million new shares to investors as part of a €3 billion capital increase.

The French government and China's Dongfeng Motor Corp., which previously took equal stakes in PSA under the plan, each acquired additional shares to bring its holding to 14.1% the same proportion now held by the Peugeot family as planned.

Chief Financial Office Jean-Baptiste de Chantillon confirms to Bloomberg News that PSA will not need to reduce its 52% stake in supplier Faurecia SA to help fund its turnaround plan.

The company aims to restore positive cash flow in 2016 by trimming capacity, shrinking its workforce, selling off most non-automotive operations, reducing its model lineup and elevating the upscale DS line of Citroen cars to a separate business unit.