(Bloomberg) -- Morgan Stanley’s infrastructure arm is planning a voluntary takeover offer for German wagon-hire and rail-logistics company VTG AG to increase its existing 29 percent stake, according to people familiar with the matter.
The infrastructure firm may announce the bid for VTG, which has a market value of about 1.4 billion euros ($1.6 billion), as early as Monday, said the people, who asked not to be identified because the discussions are private. As part of the transaction, Morgan Stanley has received a commitment from Kuehne Holding AG to sell its 20 percent stake in VTG, the people said.
Morgan Stanley’s infrastructure arm in 2016 acquired a 29 percent stake in VTG, which has about 80,000 railcars, the biggest privately owned fleet in Europe, according to its website. The Hamburg-based company’s wagon hire, manufacturing and maintenance services are used by the chemicals, petroleum and automotive industries, the firm says.
VTG traces its roots to a state-owned enterprise in 1951 and was later part of tour operator TUI AG until it was sold in 2005, according to the website. It was listed on the Frankfurt stock exchange in 2007. The company’s previous shareholders have included investor Wilbur Ross, who is currently U.S. Commerce Secretary.
To contact the reporters on this story: Aaron Kirchfeld in London at akirchfeld@bloomberg.net;Eyk Henning in Frankfurt at ehenning1@bloomberg.net
To contact the editors responsible for this story: Aaron Kirchfeld at akirchfeld@bloomberg.net, Elizabeth Fournier
©2018 Bloomberg L.P.
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