PSA Peugeot Citroen to sale Gefco trucking business image

PSA Peugeot Citroen (UG), plans to sell at least 50 percent of its profitable Gefco trucking unit, as the carmaker is seeking to raise cash amid slumping sales.

At least six private equity groups including Apollo, Axa Private Equity, Bain, CVC, PAI and Pamplona tabled indicative offers for up to 90 percent of the trucking unit.

The French carmaker said it was flexible on the size of stake it would sell but wants to remain a strategic shareholder in the company.

France bailed out Renault and PSA Peugeot Citroën, its other carmaker, with €6bn worth of low-interest loans in 2009, after the crisis depressed sales. However the company is again in the red area.

In April, PSA Peugeot-Citroen signed an agreement to sell its 48-year-old headquarters in Paris as part of a broader effort to raise cash and decrease its growing debt pile. The office, located about 700 meters from the Arc de Triomphe and the Avenue des Champs-Elysees was sold for 245.5 million euros ($327 million) to Ivanhoe Cambridge, the real estate arm of Caisse de depot et placement du Quebec.

Last month, PSA Peugeot Citroen led French light vehicle sales lower as its home market contracted 17 per cent for a ninth straight monthly decline, the country’s main auto industry association said on Friday.

Peugeot fell as much as 3.7 percent to 7.45 euros, the lowest intraday price since at least October 1989, and was trading down 3 percent at 1:23 p.m. in Paris.