By Nick Carey
LONDON (Reuters) – Most of ALD’s existing shareholders are participating in a 1.2 billion euro ($1.27 billion) capital increase launched to finance its purchase of Dutch rival LeasePlan, the French car leasing company’s top executive said on Friday.
“We have done two weeks of roadshows and the interest is fantastic,” ALD Chief Executive Tim Albertsen told Reuters. “Most of our existing shareholders are subscribing to all their rights.”
Societe Generale unit ALD launched the capital increase on Nov 29 to help fund the 4.9 billion euro deal with LeasePlan announced in January.
European Union antitrust regulators cleared the deal last month, on condition that ALD and LeasePlan sell off leasing businesses in some markets.
Albertsen said the deal should close in the first quarter once the EU approves the sales agreements for those units. The deal will give ALD a fleet of 3.3 million vehicles leased to corporate fleets.
Around 30% of the vehicles in both companies’ fleets are electrified – either full electric vehicles (EVs) or plug-in hybrids – and buying LeasePlan gives ALD more scale as the leasing market goes electric.
LeasePlan has targeted 100% electrification by 2030. ALD has targeted a lower level of 50%, but has already exceeded its goal of 30% electrification by 2025.
“We were a bit more conservative and we were wrong,” Albertsen said.
But targeting a 100% electrified fleet by 2030 is a “bit too bold” because of lagging EV charging infrastructure and would require buying only EVs and plug-in hybrids by 2027 – every year ALD replaces roughly a quarter of its fleet.
“We definitely expect double-digit EV growth for the next five years,” Albertsen said. “After the closing with LeasePlan we will have a new electrification target.”
“It will be more than 50%, but less than 100%.”
($1 = 0.9477 euros)
(Reporting by Nick Carey, Editing by Louise Heavens)
