Volkswagen is nearing a decision on the sale of its marine engine manufacturer, Everllence, according to a media report. The executive board is scheduled to meet on Wednesday afternoon to consider a recommendation on which of the three bidding parties will be awarded the contract. In preparation for this, the supervisory board of the Wolfsburg automotive conglomerate has called a meeting for the evening.
Participants estimate the value of Everllence to be between eight and nine billion euros. Three investment groups are vying for a majority stake in the engine company. One of these bidders is offering through an unusual consortium, which includes major Volkswagen shareholders Porsche SE and Qatar.
VW has declined to comment on these details, and the private equity firms have not issued statements in the past. Everllence is the current name for the traditional business unit previously known as MAN Diesel & Turbo, and which cycled through the name MAN Energy Solutions (MAN ES) at various points. Around 15 years ago, VW took majority ownership of the business and had previously attempted to sell it in 2019, but that effort failed. Now, VW aims to divest 51 percent of its shares in Everllence.
Everllence reported revenues of 4.9 billion euros last year, employing 16,200 people. VW launched the sale process in the late summer of last year, hiring two US investment banks, according to insiders. Three investment firms entered the shortlist and submitted preliminary offers early this month, which detailed plans concerning job locations and workforce retention. Apparently, they submitted offers with specific pricing earlier this week.
