Volkswagen Group aims to raise up to 1.9 billion euros ($2.1 billion) by floating a stake of at least 10 per cent in its Traton trucks unit later this month, its second attempt to bring the business to market.
VW intends to offer stock in Traton, which sells MAN and Scania vehicles, for 27 euros to 33 euros each, it said in a statement Thursday. The sale values the division at 13.5 billion euros to 16.5 billion euros ($18.6 billion).
VW plans to invest proceeds in transforming its auto production as it readies the launch of dozens of electric vehicles over the coming years and deepens an alliance with Ford Motor.
It is also seeking to capitalize on the premium that truck stocks command over automakers to create an acquisition currency, having earlier shown interest in potentially boosting its 16.8 per cent stake in U.S.-based truck maker Navistar.
Management denies that a Navistar deal is in immediate prospect, but such a move would fit with a broader pivot by VW toward the United States to balance its reliance on China, where it sells half its cars.
Besides Swedish heavy-truck specialist Scania and Germany’s MAN, Traton includes a smaller operation in Brazil that sells VW-branded commercial vehicles for emerging markets.
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