One of the biggest divestments by sovereign investors is set to create a world-leader in global mobility.
France’s ALD is planning to acquire LeasePlan from LP Group, which is led by TLD and includes Emirati sovereign wealth fund ADIA, Singaporean sovereign wealth fund GIC, Danish pension fund ATP, Dutch pension fund PGGM and Singaporean holding company Broad Street Investments.
The exact equity breakdown of LP Group is unknown, but with a proposed price tag of EUR4.9 billion (US$5.5 billion) it represents a 32% increase in value since the investors bought the motor leasing group from VW in March 2016.
The acquisition would be made through a combination of cash and shares and will create “NewALD” by end-2022. Société Générale – which currently owns 79.8% of the publicly listed ALD – would own around 53% of the new company with LeasePlan shareholders holding 30.75%.
The acquisition will give NewALD the scale to transition to electric vehicles, making it the world’s biggest EV fleet-owner.
With the conversion of their stakes in LP Group into public equity, its backers will benefit from a likely uplift in the value of the firm as well as the transition to sustainability in the auto rental sector.
LeasePlan is the latest in a slew of divestments by state-owned investors. SWFs and PPFs were also active sellers in 2021 and divested US$ 32.1 billion in 45 transactions, half of which involved properties and infrastructure assets, according to Global SWF’s 2022 Annual Report.
Mubadala was very active with two IPOs and the sales of Aldar, Cologix, MATSA and Oil Search; CPP scored the largest monetization of the year when it sold 45% in GlobalLogic to Hitachi; PIF raised US$ 3.2 bn from the sale of 5% in STC; and ADIA exited Scotia Gas and various properties in Australia and China. Over the past six years, SOIs have monetized over US$ 285 billion.