Continental has sold its ContiTech group sector to an affiliate of Lone Star Funds for \u20ac4 billion. The transaction also includes performance-based components of up to \u20ac250 million in subsequent years.<\/p>\n
The sale of its industrial business is the final step in Continental\u2019s realignment. Once completed, the DAX-listed company will become a pure-play tyre manufacturer for the first time in its history. The transaction is subject to regulatory approval.<\/p>\n
After taking into account transferred net liabilities, particularly pension and leasing commitments, Continental said it expects a cash inflow from the transaction of around \u20ac3.1 billion.<\/p>\n
Around \u20ac2.5\u202fbillion is expected to be used for a special dividend or for a combination of a special dividend and share buybacks.<\/p>\n
Continental said it will also continue to strengthen its capital structure. Lone Star Funds will take over all of ContiTech\u2019s business operations worldwide.<\/p>\n
\u201cThe sale of ContiTech marks the beginning of a new era as a pure-play tyre manufacturer,\u201d said Continental CEO Christian K\u00f6tz. \u201cAs announced, our shareholders will participate in the proceeds from the sale. We will also continue to improve our solid capital structure.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Continental has sold its ContiTech group sector to an affiliate of Lone Star Funds for \u20ac4 billion. The transaction also includes performance-based components of up to \u20ac250 million in subsequent years.<\/p>\n","protected":false},"author":105,"featured_media":42163,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[56,1],"tags":[786,13],"class_list":["post-42162","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-continental","category-news","tag-continental","tag-tech-europe"],"yoast_head":"\n