Tenneco taps banks for planned stock market return

US car parts shaper Tenneco has enlisted banks to put a imaginable banal marketplace listing, arsenic it charts a people backmost to nationalist markets aft its 2022 privatisation.

According to unnamed sources cited by Bloomberg, Apollo Global Management, which acquired Tenneco successful a woody valued astatine much than $7bn successful endeavor worth – paying $1.6bn successful equity – is weighing up however champion to monetise its holding.

Bank of America, Barclays, Citigroup and JPMorgan Chase person been hired to oversee the process.

A afloat oregon partial flotation is the favoured route, though Apollo is besides considering whether to support Tenneco's Driv aftermarket parts part extracurricular immoderate nationalist structure.

Tenneco is forecast to make EBITDA much than $2bn for the existent fiscal twelvemonth – astir doubly the fig recorded anterior to the Apollo takeover.

Against comparable listed peers, that show points to a valuation of astir $14bn.

No last decisions person been made, and the offering's presumption stay taxable to change, the study added.

The timing of the prospective listing coincides with a regulatory displacement successful the US that has broadly favoured accepted conveyance manufacturers and parts suppliers.

The removal of user taxation incentives for electrical vehicles and the easing of emissions requirements nether President Trump’s medication person revived involvement successful petrol-powered drivetrain components.

Apollo's enactment astir Tenneco comes alongside its wider moves successful the automotive proviso sector.

Last month, automotive tech radical Forvia agreed to merchantability its Interiors Business Group to Apollo-managed funds successful a carve-out transaction with an endeavor worth of €1.82bn ($2.13bn).

The division, which supplies instrumentality panels, doorway panels and centre consoles to conveyance manufacturers, is acceptable to run arsenic a standalone institution nether Apollo's ownership.

"Tenneco taps banks for planned banal marketplace return" was primitively created and published by Just Auto, a GlobalData owned brand.

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