Reuters – Russian Railways Considers Bid for Peugeot Division

Russian state railway monopoly Russian Railways has considered bidding for French carmaker Peugeot‘s logistics division GEFCO, according to materials produced for a Russian Railways’ board meeting seen by Reuters on Thursday, Reuters reported. Peugeot plans to sell a 75 percent stake in GEFCO for up to 1 billion euros ($1.25 billion) to cut the car company’s debt and shore up its finances.

(Reuters) – Russian state railway monopoly Russian Railways has considered bidding for French carmaker Peugeot’s logistics division GEFCO, according to materials produced for a Russian Railways’ board meeting seen by Reuters on Thursday.

 

Peugeot plans to sell a 75 percent stake in GEFCO for up to 1 billion euros ($1.25 billion) to cut the car company’s debt and shore up its finances.

 

In a presentation dated August 2012, a proposed deal was preliminarily valued at up to 975 million euros, excluding potential synergies, based on a $1.3 billion valuation for 100 percent of GEFCO.

 

It is unclear whether Russian Railways remains interested in the asset. Russian Railways declined to comment.

 

People familiar with the situation told Reuters last month that Peugeot had narrowed the field of potential buyers to four private equity bidders – Gores Group, Platinum Equity, PAI and a team of CVC and AXA Private Equity. ID:nL6E8IPMZD]