WDH / IPO: Conti subsidiary Vitesco plans IPO for the second half of the year | 01/22/21

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HANNOVER / REGENSBURG (dpa-AFX) –  The  Conti drive division (Continental) Vitesco wants to make a second attempt on the stock exchange in 2021. “We were doing really well, then Corona came. Now we are aiming for a spin-off in the second half of the year, provided that the Continental general meeting approves it at the end of April,” said Conti board member and Vitesco boss Andreas Wolf of the “Frankfurter Allgemeine Zeitung” (Saturday ).

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 The  auto supplier and tire manufacturer Continental put the spin-off of the division on hold after the outbreak of the pandemic last April. Since the legal spin-off under the name Vitesco, the Regensburg-based company has cut itself off from its parent company in Hanover.

“In a complete spin-off, the shareholder structure of Vitesco Technologies initially corresponds to that of Continental,” said Wolf. As a result, the Schaeffler Holding, as an anchor shareholder in Conti, will initially have the same role at Vitesco. Schaeffler Holding last held 46 percent of the Conti shares.

Vitesco currently generates more than 90 percent of its sales of 7.8 billion euros in the field of combustion engines. But Wolf announced a growth story in electromobility. “Experts expect the market for electromobility to grow by around 30 percent every year between 2020 and 2025. Our goal is to grow faster than the market.”

© www.de24.news

 The  young business with electric axle drives and 48-volt and high-voltage technology is still in deficit. But this should change in around five years: “We want to achieve break-even in the medium term. With market growth, electrification components will become cheaper, the use of materials lower and production more efficient. Poorly utilized production lines will then no longer exist.”

© www.de24.news

 The re will also be cuts in the old business with parts such as injection nozzles and high-pressure pumps for gasoline and diesel vehicles. “© www.de24.news

 The  withdrawal from the combustion engine naturally also affects parts of the workforce. We will implement the measures communicated in 2019 in a socially responsible manner over the next five to ten years.”

© www.de24.news

 The  manager also sees more opportunities through the planned independence of Vitesco to play a role in the expected consolidation in the industry. “If we see the opportunity to bundle certain forces in the market, it will be much easier for us in the new constellation than in the group of companies before.” / Stw / ngu / men





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WDH IPO Conti subsidiary Vitesco plans IPO year

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