BREAKING NEWS

BREAKING NEWS

Volkswagen targets pre-Easter IPO of trucks unit Traton - sources

Volkswagen targets pre-Easter IPO of trucks unit Traton - sources
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FABIAN BIMMER(Reuters)
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By Arno Schuetze

FRANKFURT (Reuters) - Volkswagen is aiming to list its trucks unit Traton before easter and expects to sell shares worth 5-6 billion euros, potentially making its Germany's biggest new share offering in 2019, two people close to the matter said.

Plans for a stock market listing have not been formally finalised and depend on market conditions, these people said.

Analysts will be given until early March to write reports on the company and to come up with valuations for the maker of vehicles under the MAN, Scania and VW brands, the two sources said.

Traton Chief Executive Andreas Renschler on Tuesday declined to discuss plans for a stock market listing but told analysts at the company's capital markets day on Tuesday, "We want to be the most profitable vehicle player and to have access to all global profit pools."

If markets are deemed favourable enough, Volkswagen will publish a so-called intention to float (ITF) in the second half of March followed by the listing four weeks later, the sources added.

Volkswagen declined to comment about its potential listing plans.

The IPO is expected to result in Traton having an enterprise value of about 30 billion euros (26 billion pounds) with the equity alone expected to be valued at around 25 billion euros, the sources said.

Depending on market conditions, Volkswagen could reduce the number of shares placed, the sources added. Siemens opted to adjust the number of shares sold during its Healthineers IPO earlier this year in response to investor appetite.

Depending on market conditions and investor demand, Volkswagen is expected to sell shares worth 5-6 billion euros as part of the flotation, they added.

"If markets are slightly volatile, Volkswagen will likely sell a smaller stake," one of the sources said.

Traton is aiming to float on the Frankfurt stock exchange with a possible secondary listing in Sweden, the home country of its Scania brand.

"Although a final decision on the co-listing is still pending, Stockholm would help Traton attract local, long term oriented investors in Sweden," one of the sources said.

VW has plans to build a global trucks business by integrating its MAN and Scania divisions to challenge rivals Daimler and Volvo.

A flotation could also allow Volkswagen Truck & Bus to build a war chest to deepen its relationship with Navistar, a U.S. truck maker in which it already owns a 16.85 percent stake.

JP Morgan, Goldman Sachs, Deutsche Bank and Citi have been mandated as global coordinators for the listing.

(Editing by Edward Taylor)

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