| 11:29 AM EST

Conti Moves Ahead with IPO for Powertrain Unit


#Continental #Schaeffler #europe

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Continental AG intends in early July to unveil a new corporate structure and make an initial public offering of a portion of its powertrain division, sources tell Bloomberg News.

Details are still being worked out. But the news service says the supervisory board’s favored option is to spin off the portion of powertrain operations that makes parts for internal combustion engines. The unit generated sales of €7.7 billion ($8.9 billion) in 2017.

Proceeds from the IPO would be invested in such growing markets as electrification and autonomous vehicles. Bloomberg’s sources say Conti’s board has dropped a proposal by the company’s largest stockholder, the Schaeffler family, to spin off the business to current investors.

Conti has been considering a restructuring since late last year. Bloomberg says the company is preparing to present the results of its review to shareholders.

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