By Christina Amann and Alexander Hübner MUNICH, March 12 (Reuters) - Volkswagen <VOWG_p.DE> will make the sale of a majority stake in its Everllence subsidiary contingent on holding company Porsche SE
Exclusive-VW's Everllence sale is contingent on Porsche SE becoming co-investor, sources say
By Christina Amann and Alexander Hübner
Volkswagen's Everllence Sale and Investment Details
MUNICH, March 12 (Reuters) - Volkswagen will make the sale of a majority stake in its Everllence subsidiary contingent on holding company Porsche SE becoming a co-investor of about 10% in the maker of large marine engines, two sources familiar with the matter told Reuters.
Background and Bidding Process
While VW has for months been seeking competing bids for Everllence, it has not been previously reported that Porsche SE - the Piech and Porsche families' investment vehicle that controls the VW group - would be a shoo-in for a smaller stake.
Current Bidders and Valuation
Six financial investors have advanced to the second stage of bidding for 51% of the shares after making offers that value all of the maker of large diesel engines and industrial heat pumps at about 8 billion euros ($9.25 billion), the people said.
A deal is expected by summer, they added.
Official Statements and Comments
"This is an open bidding process. The offers will be evaluated impartially and the best offer will prevail," VW said in a statement. "Claims or rumours to the contrary are simply false," it added.
Porsche SE declined to comment.
Suitors and Investment Diversification
Two more sources said that suitors from the engineering sector, such as Japan's Yanmar, were no longer in the race.
The move is part of Porsche SE's drawn-out efforts to diversify its investments beyond stakes in luxury carmaker Porsche AG and in Volkswagen, which it controls.
Private Equity Interest and Financial Details
The six remaining Everllence suitors include private equity firms Advent, Blackstone, Brookfield, CVC and EQT, said several people familiar with the bidding.
The private equity firms also would not comment.
Revenue and Staff Information
Reuters last month reported a likely price tag of about 8 billion euros for all of Everllence, formerly known as MAN Energy Solutions, above analysts' valuation estimates at the time.
Everllence reported 4.3 billion euros in 2024 revenue with 15,000 staff.
($1 = 0.8653 euros)
Additional Reporting and Credits
(Writing by Ludwig Burger; Additional reporting by Andres Gonzales in London; Editing by Miranda Murray and Louise Heavens)
