ROME, March 8 (Xinhua) -- Stellantis shareholders on Monday approved a plan that will distribute more than 54 million shares of automotive technology company Faurecia and an additional sum in cash to its shareholders, part of a spinoff of Peugeot's stake in Faurecia.
The company said shareholders approved the moves by an overwhelming 99.65 percent margin.
The shareholder vote is the first since Stellantis formally took shape in January after the merger of Italian-American vehicle manufacturer Fiat-Chrysler and French rival Peugeot Group.
The new company announced its financial results for 2020 last week in the company's first formal act. Those results, which reflected a period when the two companies were still separate, were broadly positive: Fiat-Chrysler ended 2020 with a 4.3 percent profit margin and profits (calculated before interest payments and taxes) of 1.9 billion euros (2.3 billion U.S. dollars), while Peugeot had a 7.1 percent adjusted operating margin worth 3.4 billion euros (4.0 billion U.S. dollars).
Peugeot was required to spin off part of its stake in Faurecia last October as part of the competition-related requirements for its merger with Fiat-Chrysler. Peugeot had owned a 46 percent stake in Faurecia.
The 54,297,006 shares of Faurecia are equivalent to 39 percent of the company's total share float. The remaining 7 percent stake was sold off last year for 308 million euros (365 million U.S. dollars), an amount that will also be distributed to Stellantis shareholders.
The day's development was applauded by investors in both companies, with Stellantis shares climbing 5.9 percent on the day to close at 14.48 euros (17.17 U.S. dollars) on the Italian Stock Exchange in Milan, while shares in Faurecia surged 5.6 percent to 47.42 euros (56.22 U.S. dollars) on Paris' Euronext Exchange.