AUMOVIO Spinoff Gets AUMOVING- Continental Completes Spinoff Of AUMOVIO

Core Insights - Continental AG has successfully completed the spinoff of AUMOVIO, which is now trading in Frankfurt with annual sales nearing €20 billion and a clean balance sheet with €1.5 billion in cash [1][2] - AUMOVIO aims to increase its adjusted EBIT margin from 2.7% in the first half of 2025 to a target range of 6-8%, while also growing annual sales to €24 billion [1] - The initial trading price of AUMOVIO shares was €36.60 ($43.19), resulting in a market valuation of approximately €3.7 billion, which was considered slightly disappointing by analysts [4] Company Developments - Continental shareholders received one AUMOVIO share for each share held, and the American Depositary Receipt (ADR) program is set to trade on the US OTC market [2][3] - AUMOVIO's ADR program is structured such that 5 ADRs represent 1 AUMOVIO share, and the program is not listed on a U.S. stock exchange [3][4] - Analysts indicate that investor interest is more focused on Continental's remaining tire business rather than AUMOVIO's auto-parts segment, which faces structural challenges [5][6] Market Reactions - Continental shares were trading at €57.56, reflecting a positive market reaction to the spinoff, as the combined value of both stocks exceeded the previous closing price [6] - Analysts suggest that the tire business is the primary cash generator for Continental, warranting a higher valuation for the company [6][7] - Despite initial concerns regarding AUMOVIO's market performance, its strong financial position and focus on profitability could present future investment opportunities [7]