FRANKFURT, Jan 17 (Reuters) - German auto supplier ZF Friedrichshafen is preparing to sell its airbag operation to a buyer or spin off the business in an initial public offering (IPO) but will not do so below value, the company said on Wednesday.
The statement came after the company's works council boss Achim Dietrich earlier told a press conference that an IPO was being prepared as the company was not finding many interested direct buyers for the airbag division.
ZF has been looking for a buyer for the airbag unit, which employs around 35,000 people, since 2022.
"We are examining both options, a sale or partial sale to an investor or an IPO. ZF will not part with the division at a lower price," the company statement said.
The company did not disclose what it believes would be a fair price range.
In some cases, antitrust hurdles would also stand in the way of a sale to competing companies, Dietrich said.
The plans for an IPO come at a time when workers at the company are protesting against plans to move jobs abroad.
Dietrich said ZF envisaged closing two plants and cutting 12,000 jobs in Germany and relocating operations to lower cost eastern European countries or India.
ZF was continuing to invest in Germany but also needed to stay competitive by moving jobs abroad, board member Lea Corzilius said in response. The company would not comment on job cut figures.
Dietrich said the ZF employees across the country had “anger in their stomachs” over the job cuts and fear for their jobs.
"We lack a strategy, where will ZF be in three years?" said Dietrich. (Writing by Matthias Williams; Editing by Bill Berkrot)
