Rheinmetall to launch IPO for Kolbenschmidt Pierburg unit this June

Article by Anita Panait, on May 9, 2012

Rheinmetall will launch an initial public offering of its shares in its automotive division, Kolbenschmidt Pierburg or KSPG, in the first half of 2012 to concentrate on its defense operations. The company plans to list the shares of KSPG on the Frankfurt Stock Exchange in June, but will not immediately sell its entire stake in the division.

Rheinmetall plans to initially remain as the majority shareholder of KSPG but will yield control of the automotive unit in steps. According to Klaus Eberhardt (chief executive of Rheinmetall), the IPO will allow the company and KSPG to pursue their strategy of each focusing on core businesses. Eberhardt added that it paves the way for both Rheinmetall and KSPG to continue growth, increase market share and improve competitive positions.

People privy to the IPO plans said last week that Rheinmetall could sell a 50 percent stake in the IPO, valuing the KSPG at around EUR1.3 billion. However, the final amount that could be raised from the offering and the size of the stake to be offered will depend on investor demand and market conditions. 

Rheinmetall stated in April that it expects its auto parts revenue to soar five percent to about EUR2.4 billion in 2012. The company originally planned to launch KSPG’s IPO in November 2011 but was forced to postpone it due to market volatility.

Topics: ipo

If you liked the article, share on:

Comments

Recommended

You probably heard about Ford’s CEO Mark Fields’ departure from the company. Fields has spent almost three years with the company, and now, he is going to be replaced by...
by - May 28, 2017
A racing team is claiming that it has managed to break the lap record in its category in the ever-demanding Nurburgring circuit in 2016 while driving a road-going Volvo S60...
by - May 27, 2017
Aside from the officially confirmed BMW 8 Series, the next generation BMW M5 (F90) is getting a lot of attention from the fans, enthusiasts and even potential customers around the...
by - May 27, 2017
Automobili Lamborghini’s preparations for the production of its first ever sports utility vehicle, the new Lamborghini Urus, has reached new grounds as the Italian carmaker is disclosing plans to construct...
by - May 26, 2017
The upscale version of the GMC Yukon body-on-frame sport utility vehicle – the GMC Yukon Denali – has been refreshed for the 2018 model year. It now sports a new...
by - May 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries