The bidding competition for the multi-billion Euro ship engine manufacturer, Everllence, owned by Volkswagen, is entering its final stages. According to the “Frankfurter Allgemeine Zeitung”, potential buyers are due to present their investment concepts to management this week, with discussions scheduled with union representatives for this Friday.
It is understood that bidders should submit their final price bids early next week. This timing would be shortly after the VW Annual General Meeting, which is slated for June 18th. Volkswagen may make its final decision the same week, but it intends to resolve the matter before July 20th, when the company’s factory holidays begin. Stakeholders estimate the unit’s value at approximately 8.5 billion euros.
Financial circles suggest that the participating investment firms in the race for a majority stake in Everllence include CVC, Bain, and EQT. Notably, EQT is rumored to be offering in an unusual consortium that includes Volkswagen’s major shareholder, Porsche SE, and the major owner Qatar. Everllence is the new name for the traditional business unit MAN Diesel & Turbo, which was previously known for several years as MAN Energy Solutions (MAN ES). Volkswagen plans to divest 51 percent of its shares. Volkswagen declined to comment on the process when contacted by the newspaper, and the private equity firms also did not provide statements.
The price is expected to be only one factor in this transaction, due to a specific voting arrangement within the supervisory board. EQT is partnering with two major VW shareholders who are represented on the controlling body. Two of the ten representatives on the capital bank belong to Qatar, and four belong to Porsche SE. These six individuals, as reported, are expected not to participate in the voting due to a potential conflict of interest.
