MAN, Scania, VW Commercial Vehicles: VW Truck division heading for IPO

03/29/2018

MAN, Scania, VW Commercial Vehicles VW Truck division steers towards IPO

[M] PR

Volkswagen According to insiders, in the coming weeks formal requirements for a initial public offering create its Commercial Vehicle division Truck & Bus. The division should then be transformed into a capital marketable company such as an AG, said several persons familiar with the matter Reuters.

The IPO preparations are also to be pushed forward and, as a next step, advisory banks hired. Assuming a favorable market environment, the truck division around MAN and Scania could appear on the leaflets at the beginning of 2019.

A decision on the conversion into a capital marketable company will probably fall at the next meeting of the Supervisory Board, said one of the insiders. The VW Supervisory Board will meet on May 2 for its next regular meeting – one day before the Annual General Meeting.

Decision to convert into AG could fall on May 2

About an independent job and a initial public offering of the VW commercial vehicle business thought for a long time, But the plans have now picked up speed: “Everyone now understands that time is short,” said an insider. “How long will division chief Andreas Renschler still want to work, and how long will the truck markets last?”

Under Renschler, who had come from Daimler to VW three years ago, the interlocking of the two self-confident truck subsidiaries MAN Show stock market chart and Scania Show stock market chart progress, Together with the commercial vehicle business in Brazil and the digital brand RIO, they form Volkswagen Truck & Bus.

At the Geneva Motor Show VW CEO Matthias Müller had said to the question of an IPO of the truck division: “This is a consideration that we have to deal with permanently.” But there is still no decision. A Volkswagen spokesman affirmed that the Group is reviewing options.

Deloitte should make preparations, Rothschild may hope

The consulting firm Deloitte has already been hired to help prepare for the IPO, people familiar with the matter said. The investment bank Rothschild should make hopes to be hired as a so-called IPO consultant. In this role, Rothschild would assist Volkswagen in the selection process of the accompanying banks for an initial public offering that could start in May or June. So far, no banks have been hired. Rothschild and Deloitte declined to comment.

In the works council there are reservations about an IPO of the truck division, but no fundamental opposition. Employee representation sees a transition to the capital market as a possible option in principle, but need clear commitments that such a step is positive for the workforce, said a spokesman for the Group Works Council in early March. The sale of the Ducati engine brand failed last year due to opposition from the works council.

rei / Reuters

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