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Volkswagen set to hire four banks for truck unit IPO: sources
[FRANKFURT] Volkswagen is close to hiring Citigroup, Deutsche Bank, Goldman Sachs and JP Morgan to help with the potential stock market listing of its truck unit Traton, two people familiar with the matter told Reuters on Monday.
Volkswagen said last month that Traton should by year-end be in shape for a potential stock market listing, which is expected to take place in mid-2019.
VW plans to convert Traton's legal structure to a Societas Europaea (SE) and to shortly mandate investment banks and legal advisers for a possible initial public offering, Volkswagen said at the time.
VW, JP Morgan, Deutsche Bank and Goldman Sachs declined to comment. Officials at Citi were not immediately available for comment.
Bloomberg earlier on Monday reported that the banks were likely to be mandated for the IPO.
Volkswagen is targeting proceeds of more than 6 billion euros (S$9.68 billion) with a potential listing of its truck and bus subsidiary, the division's chief executive had said earlier this year.
Volkswagen has said in the past that it is considering a listing or partial listing of the trucks division, but that this would not happen in 2018.
VW has plans to build a global trucks business by integrating its MAN and Scania divisions to challenge rivals Daimler and Volvo.
A flotation could also allow Volkswagen Truck & Bus to build a war chest to completely buy out Navistar, a US truck maker in which it already owns a 16.85 per cent stake.