The Board of Management and Supervisory Board of Volkswagen AG have approved the sale of the 76 percent stake or approximately 5.3 million shares in the listed company RENK AG to Triton for a purchase price of 97.80 EUR per share which is subject to adjustments in relation to dividend.
The planned disposal results in a book value gain according to IFRS of approximately 150 million EUR for the Group and implies a cash inflow of approximately 530 million EUR.
In the agreement of the disposal a long-term location and employment guarantee for the three German sites in Augsburg, Rheine and Hanover until December 31st 2026 was agreed between RENK and Triton. Furthermore, Triton agreed to keep the present legal form of the enterprise and the headquarters of RENK AG. All business divisions at the drive technology specialist are to be continued.
The transaction is subject to foreign investment control and merger control approvals and is independent of the outcome of the voluntary takeover offer to outstanding shareholders of RENK announced by Triton. The transaction between Volkswagen and Triton is expected to be completed by early 2021.
Frank Witter, Volkswagen AG Board Member for Finance and IT, said: “The TRATON IPO was the first important step towards focusing on our core activities. With the sale of the shares in RENK, we are systematically continuing this course under our ‘Together2025+’ strategy. Apart from reducing our complexity, a further decisive factor for the transaction was that we have found a good growth perspective for the future at RENK AG.”
Bernd Osterloh, Chairman of Volkswagen’s General and Group Works Councils, commented: “With the disposal of RENK to Triton we found a sensible solution for the asset. The representatives of the workforce were closely involved in the process. Safeguarding jobs were our highest priority. The location and employment guarantee for the German plants until 2026 is an essential and future-oriented point of the transaction.”
Martin Huth, a Managing Partner at Triton: “Triton has a tradition of investing in companies with high potential and is working closely with them to unlock such potential. With RENK AG, we are now adding a top-class company to our portfolio, characterized by a diversified business model and innovative product portfolio. Since a trust-based relationship with the company’s management and employees is of great importance to us, Triton has provided extensive guarantees for the employees. We look forward to working with RENK AG and are firmly convinced that our distinct industrial expertise will help the company continue on its successful growth path.”