LONDON: A majority stake in Volkswagen AG’s heavy diesel engine unit Everllence SE is attracting interest from a number of private equity firms, according to people familiar with the matter.
This comes as the German automaker proceeds with its asset disposal programme. EQT AB has been considering making a bid together with Singapore sovereign wealth fund GIC Pte, according to the people.
CVC Capital Partners Plc, Advent, Bain Capital, KPS Capital Partners and Clayton Dubilier & Rice are also among potential bidders for the asset, the people said.
Everllence could be valued at €5bil (US$5.8bil) to €6bil in a deal, the people said, asking not to be identified as the information is private. Suitors are expected to submit their first round bids by Feb 12, the people added.
A potential sale of Everllence, which makes ship engines and power-plant turbines, is taking place as Volkswagen faces pressure to boost profitability and streamline the sprawling portfolio of operations.
The automaker has been beset by technological upheaval and flagging demand in major markets. — Bloomberg
