Sources: Delphi Automotive ready for an initial public offering (IPO)

Article by Christian A., on May 19, 2011

Delphi Automotive LLP has acquired the services of Goldman Sachs Group Inc. and JPMorgan Chase & Co. to manage an initial public offering that could raise more than $1 billion, according to a source.

Troy-based Delphi, which was formerly the largest auto-parts maker in the U.S., has also reportedly hired Bank of America Corp., Citigroup Inc., Barclays Plc and Deutsche Bank AG to be its underwriters. The offering is scheduled to take place in the third quarter.

Sources added that the filing may come next week and the IPO may put the value Delphi at around $10 billion. When Delphi exited bankruptcy restructuring in October 2009, it had four classes of shares.

Lenders like private-equity firms Elliott Management Corp. and Silver Point Capital LP bought majority of the original Delphi and still maintain a controlling interest after Delphi moved to buy back stakes from former parent General Motors Co. and the Pension Benefit Guaranty Corp. last March.

David Whiston, an equity analyst with Morningstar Inc. in Chicago, said that Delphi is mostly owned by private equity and “they're not going to hold it forever.” He believes that the company will “sell at a reasonable profit and monetize their investment."

To buy back the stakes and to make its capital structure simpler, Delphi paid $3.8 billion to GM and $594 million to the PBGC. According to Delphi’s Web site, its year-end financial statement indicates that GM's class of shares in Delphi was valued at $2.08 billion as of Dec. 31.

If you liked the article, share on:

Topics: delphi, ipo

Comments

Recommended

November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
All is set for Volkswagen’s plans to enter the electric vehicle game, as prompted by the so-called Dieselgate scandal. In fact, the German carmaker has already made a commitment to...
by - November 17, 2017
As BMW has already revealed, the next generation of the BMW M5 (F90) is a four-wheel drive high-performance sedan with overwhelming power output and torque at its disposal. However, it...
by - November 17, 2017
McLaren unveiled a one-off Gold - on - Black 720S at the 2017 Dubai Motor Show which will be on display throughout the entire stretch of this week’s event. The...
by - November 16, 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