Ferrari announces $1 billion sale of stake in Tyc Sports

By JEFFREY VARGAS | 06/18/2018 08:57:49After more than a decade of owning the Tyc brand, the Italian automaker announced Tuesday that it would sell its stake in the sportswear company, effectively ending its 19-year ownership of the business.

The sale was made after Tyc’s current owners, Volkswagen Group of America and the Italian car maker’s parent, Fiat Chrysler Automobiles, had entered into a $3.5 billion deal to acquire Tyc.

Tyc, founded in 1982, is owned by Tyc Motors in a private company.

Tyc’s share price plunged more than 20 percent in after-hours trading following the announcement, as investors feared that the deal would result in a loss of nearly $400 million.

Fiat Chrysler will pay Tyc $1.5 trillion for Tyc after the sale, the company said in a statement.

The deal includes a stake in Ferrari, which Fiat Chrysler has been shopping for, Fiat sources told Reuters.

The transaction will also involve Tyc selling its stake to Tyc Cars, which is expected to benefit from the deal, they said.

Tyllys Tyc cars are used by athletes including sprinters, cyclists and golfers.

The company will also pay Tyco for Tyllys stock, the sources said.

The company had expected to be selling about $8 billion worth of shares in the deal.

Tyce, the parent company of Tyc and Tyc Automobiles , said it would continue to operate the Tyce brand.

It was unclear whether the Tycias cars, which are designed to mimic the look of the legendary Ferrari sports cars, would remain in Tyllies portfolio.

The Tyc name was also given to an electric car made by the company that is expected in 2018, but the company did not say if it would be made available to other buyers.