HANOVER (dpa-AFX) - The Supervisory Board of Continental (CTTAY.PK) has approved the planned spin-off of Automotive. The board aslo reccomends that the 2025 Annual Shareholders' Meeting also approve this spin-off.
Subject to this approval, the future independent company is to have cash funds of €1.5 billion by the time of the spin-off, according to the Supervisory Board's resolution, with a clear business-related allocation of opportunities and risks to the two future companies.
The financing of Automotive's operating business is also to be strengthened by a revolving credit facility of €2.5 billion.
Wolfgang Reitzle, chairman of Continental's Supervisory Board: 'Today, the Supervisory Board unanimously gave the green light for the spin-off of Automotive. This is an important step in Continental's realignment. Focused companies are significantly more agile and can create more value, especially in a challenging environment.'
The Executive Board and Supervisory Board also agreed on Continental's future dividend policy. Provided the spin-off goes ahead as planned, Continental shareholders can expect an increased distribution of 40 to 60 percent of consolidated net income.
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