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
ebooks
ebooksA special investigation by Andy McSmith
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

SThree: HR Benefits Manager

£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...

Recruitment Genius: Office Manager / Financial Services

£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...

Jemma Gent: Year End Accountant

£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...

Jemma Gent: Management Accountant

£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...

Day In a Page

The difference between America and Israel? There isn’t one

The difference between America and Israel? There isn’t one

Netanyahu knows he can get away with anything in America, says Robert Fisk
Families clubbing together to build their own affordable accommodation

Do It Yourself approach to securing a new house

Community land trusts marking a new trend for taking the initiative away from developers
Head of WWF UK: We didn’t send Cameron to the Arctic to see green ideas freeze

David Nussbaum: We didn’t send Cameron to the Arctic to see green ideas freeze

The head of WWF UK remains sanguine despite the Government’s failure to live up to its pledges on the environment
Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Set in a mythologised 5th-century Britain, ‘The Buried Giant’ is a strange beast
With money, corruption and drugs, this monk fears Buddhism in Thailand is a ‘poisoned fruit’

Money, corruption and drugs

The monk who fears Buddhism in Thailand is a ‘poisoned fruit’
America's first slavery museum established at Django Unchained plantation - 150 years after slavery outlawed

150 years after it was outlawed...

... America's first slavery museum is established in Louisiana
Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

The first 'American Idol' winner on how she manages to remain her own woman – Jane Austen fascination and all
Tony Oursler on exploring our uneasy relationship with technology with his new show

You won't believe your eyes

Tony Oursler's new show explores our uneasy relationship with technology. He's one of a growing number of artists with that preoccupation
Ian Herbert: Peter Moores must go. He should never have been brought back to fail again

Moores must go. He should never have been brought back to fail again

The England coach leaves players to find solutions - which makes you wonder where he adds value, says Ian Herbert
War with Isis: Fears that the looming battle for Mosul will unleash 'a million refugees'

The battle for Mosul will unleash 'a million refugees'

Aid agencies prepare for vast exodus following planned Iraqi offensive against the Isis-held city, reports Patrick Cockburn
Yvette Cooper: We can't lose the election. There's too much on the line

Yvette Cooper: We can't lose the election. There's too much on the line

The shadow Home Secretary on fighting radical Islam, protecting children, and why anyone in Labour who's thinking beyond May must 'sort themselves out'
A bad week for the Greens: Leader Natalie Bennett's 'car crash' radio interview is followed by Brighton council's failure to set a budget due to infighting

It's not easy being Green

After a bad week in which its leader had a public meltdown and its only city council couldn't agree on a budget vote, what next for the alternative party? It's over to Caroline Lucas to find out
Gorillas nearly missed: BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter

Gorillas nearly missed

BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter
Downton Abbey effect sees impoverished Italian nobles inspired to open their doors to paying guests for up to €650 a night

The Downton Abbey effect

Impoverished Italian nobles are opening their doors to paying guests, inspired by the TV drama
China's wild panda numbers have increased by 17% since 2003, new census reveals

China's wild panda numbers on the up

New census reveals 17% since 2003