French carmaker Renault SA is aiming for a roughly $10 billion valuation for the electric vehicle business as a standalone entity, a person familiar with the matter told Bloomberg.
“The company is preparing the EV and software entity for a potential initial public offering on the Euronext Paris exchange sometime next year, said the person, who asked not to be identified because the information is private and plans could still change,” Bloomberg said.
The business, which is dubbed ‘Ampere’, “is part of an overhaul” which Renault chief executive officer Luca de Meo will present to investors next week.
“The split of the EV business from Renault’s traditional combustion-engine operations comes as the maker of Zoe and Clio cars seeks to navigate a difficult transition to electric vehicles as a possible recession looms in Europe,” Bloomberg said.
Renault will brief investors about its upcoming plans during a capital markets on November 8, however a spokesperson declined to comment.
According to the report, the French government – which owns 15 percent of Renault – was briefed in detail about the plans, one person said.
“Ampere’s carveout has been at the heart of talks between Renault and Japanese partner Nissan Motor Co. as the two companies seek to reshape a two-decade-old alliance,” Bloomberg said, adding that Nissan may invest $500 million to $750 million for a stake of about 15 percent in Ampere.
However, the agreement “hinges on a wider deal that would see Renault lower its own 43 percent stake in Nissan to about 15 percent over time to rebalance the alliance,” people familiar with the situation told Bloomberg.
Ampere, which will be based out of France aims to employ about 10,000 people. The IPO would be subject to market conditions, the person familiar with the situation said. Recent turbulence in share prices has put a damper on new offerings.
“De Meo also will be giving details next week on Renault’s legacy combustion-engine business, dubbed Horse, which also is being carved out. Renault may announce a deal with China’s Zheijiang Geely Holding Group for 50-50 percent ownership of Horse until other investors make further investments,” two people familiar with the talks told Bloomberg.
The Horse entity with Geely will be based outside of France, with a staff of about 10,000.
Follow us on
