Stellantis NV (NYSE:STLA, EPA:STLA) has announced it has repurchased over a billion dollars worth of shares from Chinese auto manufacturer Dongfeng Motor Group.
Half of Dongfeng’s stake in Stellantis was bought back through the deal, the latter said in a press release on Wednesday, equating to 50 million common shares.
These shares - worth a combined €934 million ($1.02 billion) - will now be cancelled, the European auto manufacturer added.
“Dongfeng submitted an offer to sell to Stellantis specifying both the number of shares and the potential transaction timing, and Stellantis exercised its right to accept the offer,” Stellantis said.
“Pricing was set at the five-day average closing price of Stellantis shares on Euronext Milan for the period ending immediately prior to” November 21, Stellantis added.
The shares had climbed around 4.4% during this time, to €18.88 on Monday evening.
Following the deal, Dongfeng has retained a 1.58% holding in Stallantis of 49.2 million common shares, with the Chinese firm having initially bought into the Fiat and Jeep owner as part of a capital increase to save it from bankruptcy in 2014.
Stellantis shares climbed 0.4% to 18.63p on Thursday.