Attempts to reduce RZD’s 75% stake in logistics company to below 50% and dilute PSA Group’s 25% shareholding shelved again.
European logistics company Gefco has postponed its initial public offering (IPO) for an indefinite period, in what appears to be due to the unfavourable investment climate on stock markets currently.
The Paris-headquartered company last month submitted a registration document with France’s financial markets authority (AMF), an important step towards its listing on the Euronext Paris exchange. At the time, it said the completion of the IPO remained subject to market conditions as well as to gaining regulatory approval.
The IPO has focused on the reduction of the 75% stake in Gefco owned by Russian Railways (RZD) to below 50%, subject to the approval of the Russian Federation, with French automotive manufacturer PSA Group also wishing to decrease its shareholding of almost 25% to below 10% − its remaining stake being subject to a two-year lock-up period.
Last year, four listings planned for the Euronext Paris exchange were shelved due to either market conditions not being considered positive or to factors specific to the companies in question, according to a report in the Les Echos business newspaper. However, one stock market expert quoted in the report said conditions had improved significantly in December with far less volatility than previously, fuelling speculation that were other reasons for Gefco postponing the IPO − namely that the shareholders had overestimated the value of the company.
Contacted by Les Echos, Gefco dismissed the claims, saying it was waiting for a more favourable window to carry through the IPO plans. No one was immediately available to comment at Gefco when contacted by Lloyd’s Loading List.
For the full year 2018, Gefco expects recurring EBIT (operating profit) to reach around €160 million and consolidated revenue to be between €4.6 billion and €4.7 billion. For the full year 2019, Gefco is forecasting recurring EBIT to reach around €200 million and for revenue to grow by around 4%.