Volkswagen will make the sale of a majority stake in its Everllence subsidiary contingent on holding company Porsche SE becoming a co-investor of about 10% in the maker of large marine engines, two sources familiar with the matter told Reuters.
While VW has for months been seeking competing bids for Everllence, it has not been previously reported that Porsche SE – the Piech and Porsche families’ investment vehicle that controls the VW group – would be a shoo-in for a smaller stake.
Six financial investors have advanced to the second stage of bidding for 51% of the shares after making offers that value all of the maker of large diesel engines and industrial heat pumps at about 8 billion euros ($9.25 billion), the people said.
A deal is expected by summer, they added.
“This is an open bidding process. The offers will be evaluated impartially and the best offer will prevail,” VW said in a statement. “Claims or rumours to the contrary are simply false,” it added.
Porsche SE declined to comment.
Two more sources said that suitors from the engineering sector, such as Japan’s Yanmar, were no longer in the race.
The move is part of Porsche SE’s drawn-out efforts to diversify its investments beyond stakes in luxury carmaker Porsche AG and in Volkswagen, which it controls.
The six remaining Everllence suitors include private equity firms Advent, Blackstone, Brookfield, CVC and EQT, said several people familiar with the bidding.
The private equity firms also would not comment.
Reuters last month reported a likely price tag of about 8 billion euros for all of Everllence, formerly known as MAN Energy Solutions, above analysts’ valuation estimates at the time.
Everllence reported 4.3 billion euros in 2024 revenue with 15,000 staff.
Source: Reuters.com