Swedish truck maker Volvo has attracted two bidders for its armored cars maker Renault Vehicles Defence (RTD) really worth roughly five hundred million euros (US$573 million), folks shut to the issue reported.
FRANKFURT: Swedish truck maker Volvo has attracted two bidders for its armored cars maker Renault Vehicles Defence (RTD) really worth roughly five hundred million euros (US$573 million), folks shut to the issue reported.
The firm place the unit up for sale late final calendar year as it sheds non-core belongings to lower complexity throughout a group developed by a sequence of substantial acquisitions. It has presently sold its aerospace unit and exterior IT functions as nicely as a substantial genuine estate portfolio.
French-German tank maker KNDS, which progressed from the merger of Nexter and Krauss-Maffei Wegmann, is envisioned to hand in an supply for RTD by a July 24 deadline, as is Belgian group CMI, the sources told Reuters.
Non-public fairness groups which originally expressed curiosity in RTD are not envisioned to choose component in the auction, which is structured by Rothschild, they extra.
The French government favors an industrial customer alternatively than a fiscal investor, a supply shut to the protection ministry told Reuters final thirty day period.
Volvo, KNDS and Rothschild declined to comment.
A CMI spokesman reported the firm is interested in RTD.
“Eighty percent of our group is owned by Bernard Sarin, a French businessman, and we have many French subsidiaries. We are a Belgo-French group that would integrate a different French firm and we would have synergies involving Belgium and France. We are chatting about a lot more and a lot more cooperation involving the French and Belgian armies,” he reported.
Volvo may reap fewer than originally envisioned from the sale of RTD after a slump in current trading, folks familiar with the issue reported.
RTD not long ago adjusted its business plan and now expects fewer than 80 million euros in 2018 earnings prior to curiosity, tax, depreciation and amortization, one particular of them reported.
“Earnings are fewer essential than the order backlog,” a different of them reported, incorporating he would be expecting the group to sell for about seven times its estimated core earnings.
(Reporting by Arno Schuetze More reporting by Robert-Jan Bartunek, Cyril Altmeyer, Niklas Pollard Editing by Maria Sheahan)