Peugeot looking to sell logistics arm
September 20 , 2012
French carmaker PSA Peugeot Citroen is in talks with Russia's state railway monopoly to sell a 75 percent stake in its Gefco logistics division for $1 billion.
The move comes in a bid to reduce debt and curb mounting losses.
Gefco would first pay a special dividend of some $129 million to Peugeot as part of the deal, Europe's second-biggest carmaker announced on Thursday.
Peugeot is selling the stake in its most profitable unit, which ships Peugeot and Citroen cars across the globe, in order to lower debt.
Gefco is one of the few lucrative assets it owns.
A source with knowledge of the matter said earlier this week that Peugeot was close to signing a deal with Russian Railways after the firm outbid rivals.