August 17, 2011 / 1:23 AM / 6 years ago

Renault Samsung denies report of IPO plans

SEOUL (Reuters) - The South Korean unit of Renault SA (RENA.PA) denied a media report on Wednesday that it was seeking to list on the Korean stock exchange.

The JoongAng Ilbo daily reported that Renault Samsung was preparing an IPO to help fund the development of new cars and the expansion of its Busan, South Korea plant, without elaborating on the size of the possible deal.

“The report is not true,” a spokeswoman for Renault Samsung said.

    Renault Samsung produces vehicles for domestic and overseas sales at its Busan factory, with an annual production capacity of 300,000 vehicles. Its exports include Nissan’s Sunny and Almera and Renault’s Fluence and Latitude.

    “The timing for the listing will depend on Renault Group’s shift into a holding company structure and local stock market conditions,” a high-ranking executive was quoted as saying by JoongAng Ilbo.

    “The listing will be spearheaded by Francois Provost, the incoming CEO of Renault Samsung, who will take office on the first day of next month,” he was quoted as saying.

    Renault Samsung posted 5.2 trillion won ($4.9 billion) in sales and 3.4 billion won in operating profit last year, according to its report to the Korea Exchange. ($1 = 1070.050 Korean Won)

    Reporting by Hyunjoo Jin; Editing by Ken Wills and Jonathan Hopfner

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