Veolia Transdev to decrease services and auction assets
Veolia Transdev, the French transport group is forecasting 'enormous' demand for its assets. As such, it has put on auction assets located in Belgium, Finland, Germany and Sweden with the aim to conclude the transfers by the end of 2013.
The plan was confirmed by the finance chief with interest generated from international transport groups and investment funds in the auction of assets which includes Veolia Verkehr of Germany.
Just last month, the firm shortened its name to Transdev and announced its concentration of services to just seventeen countries by 2015. This would be a decrease from 27 currently being serviced and would result in revenue shrinkage of up to Eur6 billion from the high of Eur7.6 billion.
The company is co-owned by Veolia Environement and French bank Caisse des Depots et Consignations. The total value expected from the proceeds of the sale is at least Eur1.5 billion. The proceeds would then be used to pay for debts incurred and increase operational revenue.