PARIS, Nov 15 (Reuters) – French car maker Renault said on Wednesday its electric vehicles unit Ampere, which it plans to list on the market next year, will target 10 billion euros ($10.8 billion) in revenues in 2025, more than doubling to 25 billion euros in 2031.
The group set out financial targets for the unit, including an expected break-even in 2025 and an operating margin of at least 10% from 2030, ahead of an investor day meant to drum up support for the initial public offering slated for spring 2024.
Finance chief Thierry Pieton told reporters Renault would not sell off Ampere cheap and had ample cash flow to keep financing it if it did not get the valuation it wanted for an IPO.
“We are not going to give it away,” he said.
Asked if Renault could decide to distribute Ampere shares to existing Renault shareholders instead of proceeding with an IPO, Pieton said: “Renault is always open to other options for Ampere, but the IPO is the preferred option.”
The group's chief executive, Luca de Meo, has targeted a valuation of 8-10 billion euros for the unit, but slower demand for EVs, choppy markets and increased Chinese competition have complicated his plans.
Sources close to the matter told Reuters last month his hoped-for price tag looked over-ambitious at this stage, adding the company was unlikely to go ahead if the overall valuation for Ampere fell below 7 billion euros.
($1 = 0.9195 euros)
Reporting by Gilles Guillaume, editing by Silvia Aloisi
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Keyword: Renault sets out targets for EV unit, says won't sell it cheap