Bombardier confirms plans for Transportation IPO
BOMBARDIER: On May 7 President & CEO Alain Bellemare confirmed that Bombardier Inc is preparing for an initial public offering of a minority stake in its Transportation business, when he presented the group’s financial results for the first quarter ended March 31.
The IPO is planned for the fourth quarter of this year, subject to market conditions, with the primary listing likely to be in Germany where the Transportation business has its headquarters.
Bombardier said it had been ‘proactively reviewing its strategic options for its rail business, given the ongoing industry consolidation’. The IPO would be expected to ‘crystallise the full value of Bombardier Transportation and further strengthen the corporation’s financial position, while preserving flexibility should it wish to participate in future rail equipment industry consolidation.’
Bombardier Transportation would continue to be controlled by Bombardier Inc and be consolidated in its financial results. ‘Let me be very clear, Bombardier Transportation is not for sale’, said Bellemare. ‘We like this business and it will remain part of Bombardier Inc.’