Comprehensive M&A data with integrated detailed company information

A listing is still a possibility for LeasePlan
Posted on Tuesday, 13 February 2018 12:03
Dutch auto leasing giant LeasePlan said in a press release for full year 2017 results that it is still considering various strategic alternatives, including holding an initial public offering (IPO). The potential first-time share sale by the world’s largest car hire provider coincides with an income sheet comprising a 9.7 per cent hike in net profit year-on-year and a serviced fleet growth of 5.5 per cent. It noted it is benefitting from “a clear megatrend from ownership to usership and subscription models taking place in both the new and high-quality used car markets”. LeasePlan is riding the benefits of this change where customers are turning towards a so-called car as a service with no strings attached in terms of automobile type or duration. This category for new vehicles has been increasing steadily for the last 15 years, and is currently worth roughly EUR 68.00 billion. According to the company’s fiscal 2017 statement, it is expected to have a compound annual growth rate of 5.2 per cent from 2016 to 2025 – driven by outsourcing and the general transition to subscription. LeasePlan posted revenue of EUR 9.36 billion last year, up 1.8 per cent from EUR 9.19 billion in 2016. It had a reported net profit of EUR 466.60 million in 2017, compared to EUR 425.50 million in 2016, and underlying return on equity was up 173 basis points at 16.7 per cent. Volkswagen and German bank Metzler sold LeasePlan in 2015 to a consortium for EUR 3.70 billion. The group of investors comprised TDR Capital, the sovereign wealth funds GIC and Abu Dhabi Investment Authority, Danish pension fund ATP and Dutch pension fund service provider PGGM. According to the Telegraph, chief executive Tex Gunning said a decision has not been made regarding a listing but it may yet decide to hold an IPO later this year. The article follows on from a Reuters report in September 2017 suggesting LeasePlan is likely to hire Deutsche Bank and UBS as global coordinators for a listing that could raise more than EUR 1.00 billion. © Zephus Ltd