Continental AG: The Powertrain Spin-Off Is Not Exactly Great News But Still Positive Given The Circumstances

About: Continental Aktiengesellschaft (CTTAF), CTTAY
by: Christoph Liu
This article is exclusive for subscribers.
Christoph Liu
Growth at reasonable price, long-term horizon, dividend

Continental AG will spin off its powertrain division Vitesco Technologies to shareholders.

Initially, the company had planned a partial sale and a subsequent listing of the business.

The decision to rather spin off the division as a whole should be understood as a sign that challenging times are ahead.

Investors should not forget that both Continental and Vitesco will still be facing similar risks.

Nonetheless, I believe that the spin-off is beneficial for shareholders as it provides them with more flexibility.

Continental AG (OTCPK:CTTAF, OTCPK:CTTAY) will spin off its powertrain division - which is now called Vitesco Technologies - to its shareholders next year, pending the approval of the general meeting (which can