Volkswagen Holding Talks With Investors Ahead Of PowerCo IPO: Report

Volkswagen Holding Talks With Investors Ahead Of PowerCo IPO: Report
  • Volkswagen AG VWAGY is reportedly discussing with investors to join its battery unit business, PowerCo.
  • The move comes ahead of a possible partial initial public offering (IPO) of the subsidiary, Reuters reported.
  • The motive behind the discussion is to bring in investors pre-IPO to measure the kind of valuation PowerCo could garner in a flotation.
  • Volkswagen recently completed the IPO of its sports carmaker division Porsche, which was successful.
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  • CFO Arno Antlitz hinted at forming strategic partnerships in the coming years as a step for possible IPO of PowerCo.
  • The carmaker has set aside $21 billion for investment in its battery cell business.
  • The idea for a battery cell unit IPO was first put forward by former CEO Herbert Diess in order to fund its battery expansion plans.
  • PowerCo and Belgian circular materials technology group Umicore formed a joint venture in September to produce battery precursor and cathode material in Europe.
  • Price Action: VWAGY shares closed higher by 0.37% at $19.10 on Thursday.
  • Photo Via Company
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