The DAX company Continental has agreed to sell its subsidiary ContiTech to the financial investor Lone Star Funds. The enterprise value is 4 billion euros plus possible additional payments.
Continental signed a contract to sell the unit after approval by the management board and the supervisory board. Completion remains subject to regulatory approvals and could occur by the end of 2026.
The group expects net proceeds of around 3.1 billion euros from the transaction. These funds are intended to reduce financial debt and to distribute value to shareholders.
Shareholders can expect a special dividend or a combination of share buybacks and a special dividend amounting to around 2.5 billion euros, according to Continental.
