Your thoughts on a unique opportunity I have

Im an employee of Stellantis. They have announced an employee share purchase plan. A one time opportunity to buy shares on preferential terms. A 20% discount on shares, and a company matching contribution of up to 1000 Euros (as a Canadian, hopefully they’ll do the CAD equivalent of that). Employer pays account management fees. The investment will be locked in until Dec 17, 2027 with the “possibility” of an early release (details unknown).
What do you think? Should I take them up on it?
I know Stellantis has been beaten up lately. Looks like theyre setting the share price this year on Oct 28, we make a payment of however much we’d like to invest, and shares are delivered Dec 15.
Id love to know whether you think its a good idea.

Marked as spam

Asked on October 16, 2024 6:10 pm

63 views

▲ 0 ▼ ✔	Private answer It's only 1,000 euro (equivalent), so maybe not an issue. Just be wary of holding too much equity of the company that you also work for. If something bad happens to the company, you could loose both your job and your investments - a double whammy. Marked as spam Posted by Krispee Answered on October 28, 2024 12:18 am
▲ 0 ▼ ✔	Private answer So what you're saying is you get a 20% discount to the price they set on October 28th? To be honest..... A 20% discount to share price is pretty hard to turn down. I'd have to know the details on the early release though to tell how good of an offer it is. That is not a terribly long lockout period though. Plus the matching..... it seems like a pretty good deal. If I'm reading that right, you can contribute the $1000 euro equivalent in CAD and they'll match that and buy shares? In that case, the company's stock price could fall by 50% and you'll still theoretically have your initial capital in there? Solid offer IMO on the surface level details you've given me. In terms of where the shares come from, difficult to say. They could have some in their stock treasury. I can't imagine they'd dilute in this case. Marked as spam Posted by Dan Kent Answered on October 20, 2024 8:07 pm
▲ 0 ▼ ✔	Private answer Also: Where do the shares offered to employees in this situation come from? Are they newly created shares which dilute the rest? Or do they come from existing shares? Marked as spam Posted by Gordon de Witt Answered on October 16, 2024 6:58 pm

« Back to Previous Page