BERLIN, (Reuters) – On Thursday, shares in German automotive parts company Vitesco Technologies traded at 59.80 Euros ($70.48 each share) at Frankfurt’s market debut. This marks the company’s eagerly awaited separation from its parent Continental.
Continental’s shares fell 11.77% by 09.20 CET.
Vitesco (which produces powertrains to internal combustion engine (ICE) (NYSE :)), electric and cars), issued 40,000,000 shares Thursday morning. Continental shareholders were given one Vitesco shares for each five Continental shares.
The company stated that Continental, one of the largest suppliers of auto parts, had delayed Vitesco’s spinoff by two years because of unfavorable market conditions.
Vitesco CEO Andreas Wolf stated that “we were faced with developments that no one had foreseen” at the Frankfurt Stock Exchange. He also said “the corona crises fully confirmed our strategy…e-mobility has booming.”
Wolf said this month that the manufacturer of powertrain components currently makes the largest portion of its revenues from parts for ICE-cars. However, he stated to Reuters in February that he hopes the company will break even on electric vehicle component sales by 2024 and recoup three quarters from the electric vehicle parts market by 2030.
($1 = 0.8485 euros)
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