by Emma-Victoria Farr and Jan Schwartz
FRANKFURT/HAMBURG (Reuters) – German carmaker Volkswagen is in talks with investors about its battery subsidiary PowerCo in connection with a possible initial public offering (IPO) of the latter, two people familiar with the matter told Reuters. case.
With these discussions, the group hopes to gauge investor interest and establish a valuation for PowerCo in the event the company were to go public, the sources said.
Volkswagen is working with advisers to structure a possible deal, they added. For the time being, the discussions have not resulted in a concrete project, said one of the sources.
Volkswagen did not respond to requests for comment.
The German group has set aside 20 billion euros to invest in its battery business, which manages production but also research into the extraction and recycling of materials needed to manufacture batteries and projects involving systems energy storage.
One of the sources said that Volkswagen did not need to raise additional funds for its transformation to electrification thanks to proceeds from the recent IPO of its subsidiary Porsche.
(Report by Emma-Victoria Farr in Frankfurt and Jan Schwartz in Hamburg, French version Dina Kartit, edited by Blandine Hénault)
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