[ad_1]
- 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.
- Related: Porsche With No Brakes – Shares Race Higher In Landmark Frankfurt IPO
- 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
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
[ad_2]
Image and article originally from www.benzinga.com. Read the original article here.
