In the context of its previously announced VALUE 21 programme, Leoni AG has reviewed the existing group structure and strategy for each division. This also included a review of the optimal future ownership structure of Wire & Cable Solutions (WCS) and Wiring Systems Division (WSD) to determine how both divisions can achieve their full potential. Leoni is now preparing a stock market listing or sale of the WCS division, including the option of a partial sale.
As communicated, Leoni’s Board of Directors sees only very limited synergies between both divisions and intends to increase their operational independence. In this context, corporate support functions will transfer from the holding company to the divisions. WCS increasingly focuses on advanced and intelligent cable solutions and services and WSD further enhances its energy and data solutions and services related capabilities.
Against this background, Leoni is preparing a separation of its WCS division through a stock market listing or sale. To date, no final decision has been taken in this regard. Following a potential separation, Leoni’s primary focus would be on the development of its WSD division. To this end, Leoni has begun to mandate respective advisors.
Leoni CEO Aldo Kamper said: “We believe that both divisions will benefit from a separation. This creates two clearly focused businesses, whose individual market and technological developments as well as investments can be better and more quickly implemented. We expect the decision to separate WCS from the group puts us in a position to focus our resources on WSD and strengthens our ability to further strategically develop this business.”