Contract developments

Gefco edges nearer flotation

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Gefco car transporterGefco has reaffirmed it is looking to make a public offering on the Euronext Paris stock exchange in 2019. Russian Railways, which has a majority stake in the transport and logistics provider, said it was considering a partial reduction of its 75% stake to below 50%.

Gefco’s former owner and partial stakeholder Groupe PSA, will reduce its stake to below 10% of capital should the flotation go ahead. Groupe PSA sold 75% of Gefco to RZD in 2013 for €800m ($1.05 billion).

Gefco said the move would allow it “to enhance its growth opportunities and increase its leadership position in the automotive and broader logistics sector”.

The company posted revenue growth of 6.3% for the first nine months of 2018, compared to the same period last year, and said its finished vehicle logistics business was notable in its contribution to the results. Revenue from the finished vehicle business increased by 7.2% to €1.4m, mainly driven by Groupe PSA volumes. Raised production at PSA plants has also helped Gefco increase revenue in its Overland and Contract Logistics business by 4.5% to €1.6m.

“The [nine month] 2018 results confirm the strong growth momentum of Gefco and the group’s ability to continue improving efficiency,” said Luc Nadal, chairman of Gefco’s Management Board. “In this context we are convinced that the project of an IPO will further enhance Gefco’s growth opportunities and increase its leadership position in the automotive and broader logistics sector.”

So far this year the company has signed a joint venture agreement with multimodal logistics provider Bergé to move vehicles in Spain and completed the acquisition of transport specialist GLT for automotive and retail shipments between Morocco and Europe. In October it renewed its contract with Opel/Vauxhall for inbound and outbound logistics in Europe and Turkey.

The company is also diversifying its logistics offering and announced earlier this year that it was looking for international growth and new business beyond the traditional scope of its activities as a logistics provider to the automotive sector.