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PSA to Sell at Least Half of Gefco Unit
PSA Peugeot Citroen says it will divest at least 50% of its Gefco logistics unit to raise cash, Bloomberg News reports, citing a senior union official.
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PSA Peugeot Citroen says it will divest at least 50% of its Gefco logistics unit to raise cash, Bloomberg News reports, citing a senior union official.
The company announced plans in February to sell assets, including an unspecified Gefco stake for which it hoped to garner €560 million.
Patrice Clos, head of Gefco's works council, says PSA informed labor representatives last week that eight bidders have emerged, but it did not identify them. Clos says the company plans to narrow the field to three by the end of July and aims to close a deal by early September.
Bloomberg reported last month that five private equity firms were among the prospective buyers. The news service, citing anonymous sources, added that PSA was soliciting non-binding bids for as much as 90% of the unit.
Analysts tell Bloomberg that the sale of a majority stake would force the carmaker to deconsolidate Gefco from its financial results, which would reduce PSA's operating income by about 20%.
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