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SocGen's car leasing unit ALD Automotive reports higher profit ahead of IPO
March 3, 2017 / 7:36 AM / 7 months ago

SocGen's car leasing unit ALD Automotive reports higher profit ahead of IPO

PARIS, March 3 (Reuters) - ALD Automotive, the car leasing unit of France’s Societe Generale, reported a 21 percent rise in 2016 net profit ahead of its planned initial public offering that could value the company at more than 6 billion euros.

SocGen plans to sell a stake in ALD towards the middle of this year, while retaining a majority holding in the leasing arm which has 1.4 million vehicles.

Two financial market sources said ALD could be valued at more than 6 billion euros. One of them said SocGen was willing to sell a 20-30 percent stake.

In what could be a reference transaction, Volkswagen and Fleet Investments B.V. sold fleet management company LeasePlan Corporation N.V. to a consortium of investors at 3.7 billion euros in 2016, or 9 times its 2015 underlying net profit.

ALD made a net atributable profit of 511.7 million euros in 2016.

The bank has said that its objective was to provide ALD with the means to achieve its growth targets so that it becomes a global leader in mobility solutions.

Reporting by Maya Nikolaeva, Editing by Dominique Vidalon

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