Volkswagen's Strategic Shift: Traton Shares on the Block

Volkswagen plans to sell 15% of its shares in its truck unit, Traton, aiming to raise approximately 2 billion euros. This decision is influenced by investor concerns over low free float, which currently stands at 10.28%. The sale would reduce Volkswagen's stake in Traton to 75% plus one share.

Germany's automotive giant Volkswagen is set to sell 15% of its shares in its truck division, Traton, seeking to generate around 2 billion euros, according to a report by manager magazin.

The decision comes amidst persistent investor feedback that the low free float of Traton shares poses an investment barrier. Volkswagen's CFO, Arno Antlitz, acknowledged this concern in an earnings call earlier this year.

After a partial IPO in 2019, Volkswagen owns the majority of Traton shares, currently holding 89.72%. The company aims to lower its stake to 75% plus one share over the medium-term, aligning with market expectations.

(With inputs from agencies.)