Continental Spinoff May See 50% of Market Cap Returned, UBS Says
- A spinoff decision is expected by the end of the year
- UBS sees dividends, buybacks of €6 billion if autos spun off
An employee checks a cylinder component for a brake system module at the Continental AG manufacturing plant in Frankfurt.
Photographer: Ben Kilb/BloombergThis article is for subscribers only.
If German car-parts maker Continental AG goes through with spinning off its struggling automotive division, cash returns to shareholders could soar, according to UBS Group AG.
The bank sees scope for the remaining tires and ContiTech businesses to return around €6 billion ($6.7 billion) to shareholders though dividends and buybacks over the period 2025 to 2027, about 50% of the firm’s current market capitalization.