Schaeffler Said to Plan IPO to Pay Down Debt
Resource from: Bloomberg Likes:209
Sep 21,2015
Schaeffler AG, the German family-owned industrial company specialising in ball bearings and automotive parts, is planning an initial public offering to pay down debt, people familiar with the matter said.
Schaeffler could announce plans to list a stake of 20 percent to 30 percent in Frankfurt as early as Monday, said the people, asking not to be named as the details aren’t public. The company plans to devise a special structure that will allow the Schaeffler family to retain control after the listing, the people said.
A successful IPO of Schaeffler would advance a turnaround after the credit crisis, which weighed on the manufacturer as it made a takeover bid for German car-parts maker Continental AG at the height of the global crunch. The company’s net debt stood at 6.24 billion euros ($7.04 billion) at the end of the first half, accumulated mainly from becoming the biggest shareholder in Hanover, Germany-based Continental, in which Schaeffler owns about 46 percent, according to data compiled by Bloomberg.
The sale could be among Germany’s largest IPOs this year, alongside Bayer AG’s planned 2.5 billion-euro listing of its plastics unit Covestro.
A spokesman for Schaeffler couldn’t immediately be reached outside of regular German business hours.
Schaeffler’s roller-bearings are used in the London Eye Ferris wheel and Airbus A380 double-decker. The manufacturer, based in Herzogenaurach in southern Germany, reported earnings before interest and taxes rose 51 percent last year to 1.5 billion euros. Profitability rose to 12.6 percent of sales from 9 percent, meeting the company’s projections of a margin of 12 percent to 13 percent. Schaeffler, which competes with SKF AB of Sweden and Timken Co. in the U.S., said this year’s margin will be within the same range.
The company is controlled by Maria-Elisabeth Schaeffler-Thumann and her son Georg Schaeffler, who is also chairman of the supervisory board and ranks among the richest Germans, with a fortune of about $19.8 billion, according to the Bloomberg Billionaires Index. The manufacturer is led by Chief Executive Officer Klaus Rosenfeld
(Bloomberg)
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