(Bloomberg) — ABB Ltd. expects proceeds of at least $750 million from selling shares in its profitable electric-car charging business it plans to list during the second quarter.
The funds will be invested for further growth to expand the business amid high demand for fast and normal charging, Chief Executive Officer Bjoern Rosengren said Thursday. ABB plans to hire a leader from the tech industry who has “dealt with fast growing companies,” Rosengren said.
Sales for battery-powered vehicles are taking off as consumers respond to generous incentives and more attractive models from a range of carmakers. EVs accounted for nearly a fifth of deliveries in Europe last year, including plug-in hybrids, driving concerns over availability of sufficient public charging points.
The e-mobility business has so far seen “very strong growth,” Chief Financial Officer Timo Ihamuotila said on a call with analysts. “It’s actually a profitable business.”
The Swiss industrials company offers a range of chargers and related installing and maintenance services, used by operators like Ionity GmbH and Electrify America.
Facing pressure from shareholders including Cevian Capital to increase profitability, Rosengren has been revamping ABB’s conglomerate structure. Late last year, the company finalized the sale of its Dodge mechanical power transmission unit for $2.9 billion, and a final decision on a spinoff of its turbocharging unit will be made toward the end of the first quarter, ABB said Thursday.
“He’s done a really solid job executing on restructuring,” said Morningstar analyst Denise Molina. “If anyone in industrials are going to be able to overcome the inflationary pressure, it’ll be them.”
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