Float values GM's Delphi at $9.6bn
Saturday 06 February 1999
Initially GM is listing just under 20 per cent of the shares, raising $1.7bn. But it plans to distribute the remainder of the shares to GM shareholders later this year through a demerger.
The initial public offering of 100 million shares, representing 17.7 per cent of Delphi, was priced at $17 a share. The offer was three-and- a-half times subscribed, with institutions applying for 310 million shares and retail investors 150 million shares.
Delphi, which supplies a full range of components to GM factories throughout the world, had sales of $28.4bn last year, ranking it among the top 30 US companies in the Fortune 500. Based in Troy, Michigan, the company has 200,000 employees and operates from 169 sites and a further 40 joint ventures in 36 countries.
In the UK, Delphi employs 1,250 people at six sites - Coventry, Ellesmere Port, Liverpool, Southampton, Luton and Basingstoke. It supplies components ranging from engine parts and instrument clusters to steering columns and electronic systems to Vauxhall's two UK car plants at Ellesmere Port and Luton.
Delphi's chief executive, J T Battenberg III, said the main purposes of floating the company as an independent business was to pick up more sales from vehicle manufacturers other than GM. Historically, rival car makers have been reluctant to buy from a business which is 100 per cent- owned by GM, the world's leading car maker.
For the same reason Ford is also planning a stock market listing and demerger of its in-house automotive components business, Visteon.
Mr Battenberg also said that the flotation would give Delphi greater commercial freedom and mean that it no longer had to compete with other parts of GM for resources to expand and update its facilities.
Paul Fleming, Delphi's UK director, said the company was already much more than an original equipment manufacturer. It also planned to expand its operations to take advantage of the number of car makers that had set up in Britain to take advantage of the European market.
Delphi has already helped Land Rover to produce a new system that enhances the cornering of its models.
- 1 Frank Lampard's face drops when Holly Willoughby introduces him as a 'Man City legend'
- 2 'Do not give them a reason': Baltimore man divides police and rioters in hope of avoiding violence
- 3 X Factor in crisis as numbers of people auditioning plummets
- 4 Baltimore riots: Furious mother marches her son home live on TV
- 5 General Election 2015: Stephen Hawking says he will vote Labour
General Election 2015: Tories sack candidate who said she would never support 'the Jew' Ed Miliband
Bali Nine executions: Indonesia confirms killings of Andrew Chan and Myuran Sukumaran will go ahead
The four utterly contradictory polls that tell the story of this election and why it is pointless trying to predict the outcome
General Election 2015: Prospect of Labour-SNP coalition makes one in four voters less likely to support Ed Miliband, says survey
Baltimore riots: Furious mother marches her son home live on TV
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
Andrew Lloyd Webber: Phantom of the Opera writer mocked after issuing a warning about Ed Miliband and Nicola Sturgeon
EU exit would hit UK economy much harder than neighbouring countries, study finds
General election 2015: Labour will toughen hate crimes legislation surrounding Islamophobia
iJobs Money & Business
£Basic (OTE) + Uncapped Commission: Guru Careers: A Stockbroker (qualified / p...
£20000 - £60000 per annum: Recruitment Genius: Are you recently QCA Level 4 qu...
£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...
£25 - 30k: Guru Careers: We are seeking an Application Support Analyst / 1st L...