The Agnelli case: they cash in, but ask for loans
And then there is the case Agnelli. The family has decided not to back off on the megadividend extraordinary due to the forthcoming merger with the 5.5 billion euro PSA, of which 1.6 will go to the Exor family holding. Yet with FCA Italy has applied for a Covid loan of € 6.3 billion with 80% state guarantee. FCA Italy spa an Italian company that has FCA as its sole partner; , that is, the Italian branch of a multinational company that has chosen the Netherlands as its registered office, where corporate law is easier, and the United Kingdom as its tax office, where the most convenient tax regime. Especially on profits: FCA Italy pays taxes on local production and sales in Italy, but the profits from these activities go to London, as well as shareholder dividends. The former Turin-based company did not comment, it only issued a note in which FCA explains that Italy has initiated a procedure with the Italian government for obtaining a guarantee from Sace for the improvement of a credit line intended exclusively to support the supply chain. automotive in Italy, made up of around 10,000 small and medium-sized enterprises. In this regard, a dialogue was initiated with the first Italian banking group, Intesa Sanpaolo, without further explaining how the loan will be used. The law allows it: the measures of the Cura Italia and Liquidity decrees give the possibility for micro, small and medium-sized enterprises based in Italy and debts to banks and financial intermediaries to obtain a credit concession to overcome the damages of the Covid, but on condition that dividends are not detached. And here is the catch: Fiat Italy FCA does not give dividends, the proceeds go to the FCA parent company which, in fact, is not an Italian company and must not comply with Italian regulations. Then 6.3 billion are granted to a company whose group reported a net profit of 2.7 billion in 2019, dividends of 5.5 and controlled by a financial company, Exor, which has profits in 2019 for another 3 billion of Euro. Constraints on the use of money guaranteed by the state? They don’t turn out. To stay in the Fiat house, FCA will not distribute its 2020 dividend of 1.1 billion, as will Cnh (Iveco) which has canceled 243 million euros of coupon out of 781 of profits. Instead, the shareholders, Ferrari (210 million) and Exor (100 million, 54 of which only to the Agnelli family) will repay.