ABB’s Electric-Vehicle Charging Business Valued at $2.6 Billion
ABB Ltd.'s electric-vehicle charging business has raised funds from minority investors that value the company at about 2.5 billion Swiss francs ($2.6 billion).
The division, ABB E-mobility, sold new shares for about 200 million francs to equity fund Interogo Holding AG, family office moyreal holding AG and ABB E-mobility Chairman Michael Halbherr, according to a statement Monday. The 8% stake sale will provide funding to grow the charging business, as the Swiss conglomerate still pursues plans for an eventual listing.
ABB, which maintains a 92% holding, in June delayed an IPO of the unit that was set to raise $750 million because of the market rout that has slowed new listing this year. The industrials company offers a range of chargers and related installation and maintenance services, used by operators like Ionity GmbH and Electrify America.
“We remain committed to our strategy to separately list our E-mobility business subject to constructive market conditions,” ABB Chief Executive Officer Bjorn Rosengren said. “The private placement underpins our joint commitment to ensure ABB E-mobility's fast growth in order to remain best positioned to lead the sector in EV charging solutions.”
ABB has been streamlining its business to boost profitability, following pressure from shareholders. This month, the company's Accelleron turbocharging business started trading on the Swiss stock exchange following a spin off, while ABB has also been trying to offload its power-conversion unit.
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