Volkswagen plans on merging its components business and mulls asset sale

According to sources, German carmaker Volkswagen AG plans to combine the components business of its brands and divest certain assets as part of its strategy to navigate itself out of the emissions crisis.

The company’s senior management outlined its plans to the board, and may disclose it to investors by Thursday.

According to sources, the company plans to merge the components units of each brand into one new entity that would include about 70,000 employees at more than two dozen locations worldwide, allowing it to save costs and boost efficiency from a single management.

Currently, there were no plans outlined by VW to spin off or sell the new VW components unit.

VW is also likely to announce plans for a portfolio review, which could lead to the sale of non-core assets. While no decisions have been made on which assets are part of the sale, ones that could end on that list include motorcycle brand Ducati, the MAN Diesel & Turbo business and propulsion specialist MAN Renk.

An initial public offering of the trucking business could also be considered in future.

Source: Bloomberg

Adani India interested in SunEdison’s Indian assets

Adani Green Energy, a subsidiary of the Adani Group, was looking to acquire renewable energy projects owned by SunEdison India, subsidiary of the bankrupt parentco SunEdison.

Soon after a bankruptcy filing by the US-based developer, several Indian companies were reported to have expressed interest in acquiring SunEdison India’s projects.

SunEdison India already operates 700 MW of renewable energy capacity, mostly in the form of solar power projects, with an additional 1.7 GW under development. The company sold 425 MW of solar projects in India to its yieldco TerraForm Global for $231m in 2015.

The company also owns wind energy projects, some of which it acquired last year from Fersa Energías Renovables.

Around 1,000 MW of solar capacity is being developed or secured by SunEdison in competitive auctions, which includes the 500 MW project SunEdison won in the Andhra Pradesh auction.

The project was among the most economical projects in India, in terms of tariff.

Apart from Adani Green Energy, Tata Power Renewable Energy is also believed to have expressed interest in acquiring SunEdison’s assets.

Source: CleanTechnica

Brazilian miner Vale S.A. issues U.S.-dollar bonds

Brazilian miner Vale S.A. tapped the U.S. dollar debt market for the first time in almost four years as a commodity-price recovery brings down the Brazilian mining giant’s borrowing costs.

The company’s subsidiary Vale Overseas Limited, issued and priced its senior unsecured $1.25bn bond due 2021. The notes are guaranteed by Vale S.A.

Joint Books are BB Securities, Bank of America, Bradesco BBI, HSBC and Santander.

The company, which last sold U.S. dollar bonds in 2012, would use proceeds from the issuance to develop its iron-ore project, which it plans to commission later in 2016.

Separately, the company plans on divesting assets worth $10bn by 2017 after reporting a fourth-quarter net loss of $8.6bn.

Source: Bloomberg

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Yahoo hires investment bank to explore sale of patents

According to sources, Yahoo Inc. has mandated investment bank Black Stone IP LLC to sell about 3,000 of its internet company’s patents.

The company notified a number of potential buyers for the patents, which date back to when the company was founded in 1996 and also include its original search technology.

The deadline for bids for the patents has been set for mid-June 2016 by Yahoo.

Previously in March 2016, the company had stated that it planned on sales of $1-3bn of patents and non-core assets.

Source: Reuters

 

Calumet reports 1Q’16 loss of $67.7m; looks at asset divestments

U.S-based Calumet Specialty Products posted a 1Q’16 loss of $67.7m or 87 cents per share, as compared to a profit of $23.8m, or 27 cents per share, a year ago. The news comes on the company’s earlier announcement that it expected a net loss between $59 – 83m for the same period.

Revenues for the 1Q’16 period declined 29% yoy to $713m (1Q’15: $1bn).

The company, which owns 10 refineries across the U.S., attributed the dismal performance to the effect of collapsing oil prices as its fuel products business suffered due to weaker refining margins.

In light of the weak results, the company’s CEO Tim Go stated that the company would look to divest some of its assets, including the $430m refinery that opened a year ago in western North Dakota.

The refinery, with an operating capacity of 20,000 bpd, currently processed output worth 15,000 bpd. Calumet plans to operate the refinery at 75% of capacity due to the weakening commodity prices.

Source: IBJ

Anglo American to sell its Brazilian business for $1.5bn

Mining giant Anglo American plc stated that it had agreed to sell its niobium and phosphates businesses in Brazil to China Molybdenum Co. Ltd for $1.5bn.

Proceeds from the sale would be utilized towards reducing its debt, which Anglo plans to reduce to c.$10bn by the end of 2016 from its FY 2015 debt of $12.9bn. Previously, Anglo had conducted a $1.3bn debt-repurchase offering as part of its turnaround and debt reduction plan.

The company plans of a further $3-4bn of asset sales in 2016. Anglo American plans to focus its mining operations on diamonds, copper and platinum.

Source: WSJ

SunEdison sells its energy projects in Chile

Bankrupt solar developer SunEdison Inc. reached an agreement to sell two of its energy projects in Chile to power company for an undisclosed amount.

SunEdison also signed a 15-year power-supply contract with Colbun, to supply the Chilean energy company with 200 gigawatt hours per year. SunEdison stated that it planned to construct a 100 megawatt solar plant in Chile to supply the energy.

Separately, India-based firm Mahindra Susten has filed a lawsuit against SunEdison’s subsidiaries for their failure to pay Mahindra its dues of INR 46m on a project in India.

Source: Business Standard, Reuters