The spin-off of drive technology maker Vitesco has yet to bear fruit for Continental shareholders. Before Vitesco’s stock market debut, they had reserved one stock in the Regensburg company for five Conti shares – but its value is now even lower than before. Vitesco was valued Thursday 2.4 billion euros at the first price of 59.80 euros. The action closed at 58.90 euros. Continental lost 6.2% and closed with 94.89 euros.
Vitesco is grappling with the evolution of the automotive industry and needs to convert the production of gearboxes for diesel and gasoline engines into components for electric cars as quickly as possible. About half of the turnover of eight billion euros will no longer be part of the core business in the future. Vitesco boss Andreas Wolf was optimistic at the Frankfurt Stock Exchange about the success of the far-reaching restructuring. “Electric mobility is booming,” Wolf said, before ringing in stock exchanges with the big bell. The market is growing very dynamically, also under pressure from policy and regulation. According to Wolf, the electric motor business is expected to be profitable by 2024. Vitesco has left open what the structural change will mean for the nearly 40,000 employees.
In view of the corona pandemic, the celebration of the first opinion took place under tight hygienic conditions. The managers of Vitesco headed one by one towards the trade barrier, the stock exchange bell was disinfected after each ring. The guests were strictly separated into groups.
Vitesco was Thursday – as usual with spin-offs from Dax companies – the 31st member of the leading German index for a day. In the evening, index funds replicating the Dax had to throw away their deposit papers. As a result, increased pressure on the Vitesco share was expected. In the afternoon, it was listed at 59.03 euros. At the same time, the Conti share price fell 4.6% to 96.64 euros.
When Siemens Energy split from Siemens a year ago, the tech firm’s stake had barely given up, so the value of a shareholder portfolio rose sharply. Continental had hoped for the same effect. With the transmission division spin-off, an automotive supplier “leg lock” will fall, investment bankers said. For many investors, this will only allow them to return to Conti.
The spin-off was delayed for two years – according to Conti, also because of the corona pandemic. The main shareholder of both companies is the Franconian billionaire Schaeffler family. Maria-Elisabeth Schaeffler-Thumann and her son Georg each own 46 percent of Conti and Vitesco.