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ABN Amro to sell LeasePlan Corp

April 23, 2004 16:56 IST

Dutch financial major ABN Amro will sell its fleet management arm LeasePlan Corporation, which has operations in India and 25 other countries, to Volkswagen and two other companies for 2.13 billion euro.

ABN on Friday signed an agreement to divest 50 per cent stake in LeasePlan to Volkswagen Group and 25 per cent each to Abu Dhabi-based Mubadala Development Company and Athens-based Olayan Group.

"We want to focus on our core business as defined by our strategy. Although LeasePlan is a great business with strong market position in fleet management, it was no longer part of our core business," ABN Amro chief financial officer, Tom de Swaan, said in a statement.

The deal is valued at 2 billion euro in cash and 130 million euro as a dividend.

The deal is subject to regulatory approvals and is expected to be completed before the end of this summer, Swaan said, adding: "ABN Amro's central works council has given a positive advice on the proposed transaction."

LeasePlan, the leading fleet management company in Europe, has operations in 26 countries employing 7,000 people and managing 1.2 million vehicles.

The company has been operating in India for four and half years, and holds the leading position with a fleet size of 6,600 vehicles.

Commenting on the deal, LeasePlan CEO Hugo Levecke said: "The combination of three long term strategic shareholders will enable us to continue our business strategy focused on proving first class multi-brand fleet management services on a worldwide scale."

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