KSPG Poised for IPO

Rheinmetall AG says it plans to sell shares in its KSPG automotive unit in an initial public offering by the end of June.

Rheinmetall says it will retain a majority stake in the unit, formerly known as Kolbenschmidt Pierburg, after the IPO. But the Dusseldorf-based company plans to gradually cede control.

Bloomberg News, citing anonymous sources, says Rheinmetall could sell a 50% stake at a price that would value KSPG at about €1 billion. The IPO had been planned for last November but was postponed because of market volatility, according to the news service.

Rheinmetall predicts that KSPG, which makes pistons, engine blocks and components to reduce emissions and fuel consumption, will boost sales 5% to €2.4 billion this year.