FRANKFURT (Reuters) – Auto parts and components supplier Aumovio, spun off from German tyre maker Continental, listed on the Frankfurt Stock Exchange on Thursday with a total market value of about 3.5 billion euros ($4.14 billion).
The spin-off is part of the Hanover-based parent company’s strategy to increase its profitability by breaking up. Continental shareholders received an additional Aumovio share for every two shares they hold via the listing.
The new company, which has about 100 million in total shares outstanding, opened at a price of 35 euros and traded at 34.64 euros at 0940 GMT.
Reflecting some of the loss in value from the split, shares in Continental traded 19.5% lower, but the combined effect still left its investors with a net gain of more than 4% after receiving Aumovio shares.
COST CUTTING
Aumovio CEO Philipp von Hirschheydt said the separation would…
