March 26, 2018 / 4:06 PM / 6 months ago

PSA says ready to part with Gefco stake

PARIS (Reuters) - PSA Group (PEUP.PA) no longer needs its 25 percent stake in its former logistics division Gefco, the maker of Peugeot and Citroen cars said on Monday after French newspaper Les Echos reported that the holding had been put up for sale.

FILE PHOTO - The Peugeot logo is pictured on the new Peugeot 508 before a news conference of PSA Group to announce the company's 2017 annual results at their headquarters in Rueil-Malmaison, near Paris, France, March 1, 2018. REUTERS/Benoit Tessier

PSA “observes that Gefco’s operating performance and diversified client portfolio mean that its capital stake is no longer necessary,” a spokesman for the carmaker said. “No transaction has been identified at this stage,” he added.

The Paris-based carmaker put its minority holding on sale after a five-year commitment to retain it expired in December, the French financial daily reported, citing unnamed sources.

PSA sold three-quarters of the logistics business to Russia’s RZD state-owned railway operator for 800 million euros ($995 million) in 2012, amid a cash crisis that took the carmaker close to insolvency.

PSA, which last year acquired Opel and Vauxhall from General Motors (GM.N), signed a new five-year, 8 billion-euro contract with Gefco in 2016 and remains its biggest client.

($1 = 0.8037 euros)

Reporting by Laurence Frost; Editing by Ingrid Melander

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