Frankfurt: Daimler will save a 35% stake in the truck division, he plans to spin this year, luxury car makers say on Friday, provide more details about landmarks, it will increase the value of shares.
The Daimler Truck Holding Ag as a separate registered entity, was first announced in February, will be chosen by Daimler shareholders at an extraordinary public meeting on October 1.
They will receive one share in the truck division for every two Daimler shares they have.
Daimler, in turn, will be renamed Mercedes-Benz Group AG to reflect the focus on the car and van business, including the Mercedes-Benz brand, and attempts to challenge Tesla and other rivals on the market for electric premium cars.
“The reignment of Daimler made a successful story of two,” said the Chief Executive of Daimler Ola Kaellenius.
“With this bold step into a new future, we create added value with two pure playback companies for customers, employees, shareholders and our partners.” Daimler will provide Daimler Holding AG trucks with net liquidity of 5 billion euros ($ 5.9 billion) until the end of the year, when truckmaker shares are expected to start trading, so they can achieve investment ratings.
Spin-off, where the existing shareholders get shares in new vehicles for free, have become a prominent way for large companies to open value and respond to investors who demand a sharper business model.
Daimler shares rose by around 17% since the spin-off announcement, in line with the wider European automotive sector.
“Until now, we have to travel with convoys.
In the future, we will be able to plan our own route and choose the best route for us,” said Martin Daum, Chief Executive Daimler Truck Holding Ag.
Of the 35% Daimler plan to maintain in the division, which is the largest truck and bus maker in the world and will be a competitor for the German DAX Blue-chip index, 5% will be transferred to the Carmer Pension Fund.
On January 1, 2021, the Equity of the Ag Holder Ag Daimler shareholder with a pro-forma base reached around 11.1 billion euros, equivalent to the ratio of equity 22%, said Daimler.