February.19.2014
PARIS - Orrick is advising FFP and its controlling company, Etablissements Peugeot Frères ("EPF"), the holding company of the Peugeot family, in a $4.1 billion capital investment in Peugeot SA, one of the world's oldest car makers. Dongfeng Motor Group Company Limited, Peugeot’s historical manufacturing and sales partner in China (“Dongfeng”) and the French State will each contribute $1.1 billion to Peugeot, with the remaining balance being raised by Peugeot in a rights offering. Existing shareholders will also receive free warrants entitling them to subscribe to new shares in the company. FFP/EPF, Dongfeng and the French State will each own a matching 14 percent equity interest in the company at completion.
The Peugeot family is the largest shareholder of PSA Peugeot Citroën through its holding vehicle EPF and FFP, an investment company listed on the NYSE-Euronext Paris that is majority-owned by EPF. The preliminary agreement, which requires approval from shareholders and regulators, will enable Peugeot to advance the company's use of hybrid technology and invest in low-cost cars. The Orrick team includes M&A and private equity partners Jean-Pierre Martel and Etienne Boursican and corporate associate Thomas Forin.