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VW halts truck unit IPO until market conditions improve

Auto News - Published on Mon, 18 Mar 2019

Image Source: Automotive News Europe
Volkswagen said that it would halt preparations for an initial public offering of its trucks unit Traton until market conditions improve, stalling what was expected to be Germany's biggest share offering this year. The automaker had previously said it could list up to 25% of Traton in a deal that was expected to raise 5-6 billion euros (USD 12 billion). Volkswagen said it would still aim for an IPO once market conditions improve.

Britain's looming departure from the European Union and a trade dispute between the United States and China have caused uncertainty on stock markets, making investors hesitant.

In September Volvo Cars and its Chinese owner Geely also postponed plans to list the Swedish carmaker blaming trade tensions and a downturn in the automotive industry. Proceeds from European listings are down 97 percent so far this year, according to Refinitiv data.

Volkswagen had in recent days been considering modifying its plan, and mulled measures like reducing the stake of Traton that it planned to float to 15 percent from 25 percent, people close to the matter said.

Volkswagen's Chief Financial Officer Frank Witter said the board unanimously backed the idea of listing Traton but warned markets remained volatile. On Monday he had said an IPO of Traton would not come at any price.

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

Source :

Posted By : Rabi Wangkhem on Mon, 18 Mar 2019
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