Float values GM's Delphi at $9.6bn

THE WORLD'S largest automotive components supplier arrived on the stock market yesterday as General Motors floated its Delphi Automotive Systems division with a valuation of $9.6bn (pounds 5.8bn).

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.

Start your day with The Independent, sign up for daily news emails
News
peopleIt seems you can't silence Katie Hopkins, even on Christmas Day...
Arts and Entertainment
Left to right: Stanley Tucci, Sophie Grabol and Christopher Eccleston in ‘Fortitude’
tvSo Sky Atlantic arrived in Iceland to film their new and supposedly snow-bound series 'Fortitude'...
Life and Style
fashion
Arts and Entertainment
tv
PROMOTED VIDEO
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Selby Jennings: Oil Operations

Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...

The Jenrick Group: Night Shift Operations Manager

£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...

SThree: Trainee Recruitment Consultant - LONDON

£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...

Day In a Page

Isis in Iraq: Yazidi girls killing themselves to escape rape and imprisonment by militants

'Jilan killed herself in the bathroom. She cut her wrists and hanged herself'

Yazidi girls killing themselves to escape rape and imprisonment
Ed Balls interview: 'If I think about the deficit when I'm playing the piano, it all goes wrong'

Ed Balls interview

'If I think about the deficit when I'm playing the piano, it all goes wrong'
He's behind you, dude!

US stars in UK panto

From David Hasselhoff to Jerry Hall
Grace Dent's Christmas Quiz: What are you – a festive curmudgeon or top of the tree?

Grace Dent's Christmas Quiz

What are you – a festive curmudgeon or top of the tree?
Nasa planning to build cloud cities in airships above Venus

Nasa planning to build cloud cities in airships above Venus

Planet’s surface is inhospitable to humans but 30 miles above it is almost perfect
Surrounded by high-rise flats is a little house filled with Lebanon’s history - clocks, rifles, frogmen’s uniforms and colonial helmets

Clocks, rifles, swords, frogmen’s uniforms

Surrounded by high-rise flats is a little house filled with Lebanon’s history
Return to Gaza: Four months on, the wounds left by Israel's bombardment have not yet healed

Four months after the bombardment, Gaza’s wounds are yet to heal

Kim Sengupta is reunited with a man whose plight mirrors the suffering of the Palestinian people
Gastric surgery: Is it really the answer to the UK's obesity epidemic?

Is gastric surgery really the answer to the UK's obesity epidemic?

Critics argue that it’s crazy to operate on healthy people just to stop them eating
Homeless Veterans appeal: Christmas charity auction Part 2 - now LIVE

Homeless Veterans appeal: Christmas charity auction

Bid on original art, or trips of a lifetime to Africa or the 'Corrie' set, and help Homeless Veterans
Pantomime rings the changes to welcome autistic theatre-goers

Autism-friendly theatre

Pantomime leads the pack in quest to welcome all
The week Hollywood got scared and had to grow up a bit

The week Hollywood got scared and had to grow up a bit

Sony suffered a chorus of disapproval after it withdrew 'The Interview', but it's not too late for it to take a stand, says Joan Smith
From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?

Panto dames: before and after

From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?
Thirties murder mystery novel is surprise runaway Christmas hit

Thirties murder mystery novel is surprise runaway Christmas hit

Booksellers say readers are turning away from dark modern thrillers and back to the golden age of crime writing
Anne-Marie Huby: 'Charities deserve the best,' says founder of JustGiving

Anne-Marie Huby: 'Charities deserve the best'

Ten million of us have used the JustGiving website to donate to good causes. Its co-founder says that being dynamic is as important as being kind
The botanist who hunts for giant trees at Kew Gardens

The man who hunts giants

A Kew Gardens botanist has found 25 new large tree species - and he's sure there are more out there