July 10, 2019 / 7:50 AM / 6 months ago

Germany's Leoni explores sale or listing of its wire and cables business

FILE PHOTO: Workers of Leoni industries assemble electric parts for vehicles to be exported to Brazil in San Lorenzo, Paraguay December 15, 2016. REUTERS/Jorge Adorno/File Photo

(This July 10 story corrects second paragraph to say Leoni explores sale or listing of its wire and cables business)

MUNICH (Reuters) - Germany’s Leoni (LEOGn.DE) is exploring a sale or flotation of its wire and cables division as part of a broader review of the company’s group structure, Chief Executive Aldo Kamper told Reuters.

Leoni said it will explore a listing or partial sale of its wire and cable solutions (WCS) business, which supplies the healthcare, factory automation, transportation and automotive markets, separating it from its wiring systems division (WSD).

“We need the proceeds to invest into our wiring systems division. With this step we give ourselves new funding opportunities,” Kamper said on Wednesday.

Leoni wants to broaden the product range in its wiring systems division to capture a greater share of business from the auto industry, particularly in energy and data management, the company said.

The Cable and wiring system specialist also wants to offer engineering, design and simulation services.

Leoni brought in Kamper as its chief executive in September 2018, after cutting its 2018 targets. In March this year Kamper abandoned the company’s 2019 profit targets, announced job cuts and said the company’s finance chief would quit.

Reuters reported in December that Indian car wiring maker Motherson Sumi Systems Ltd (MOSS.NS) was in talks with Leoni over a possible merger, citing people close to the matter.

Reporting by Alexander Huebner; Writing by Edward Taylor; Editing by Thomas Seythal and Louise Heavens

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below