Aptiv Considers Selling Electrical Distribution Unit Instead of Spinoff

(Bloomberg) — Aptiv Plc, which in January announced a spinoff plan for its electrical distribution systems business, is now reaching out to potential buyers for the unit, according to people familiar with the matter.

The company could seek a valuation of $5 billion for the business, the people said. A sale may attract interest from strategic buyers and private equity firms, they said, asking not to be identified discussing confidential information.

The deliberations are at an early stage and Aptiv could still pursue its spinoff plan instead of a sale, the people said. A representative for Aptiv declined to comment.

Aptiv said in January that its board had approved spinning off the EDS business, which would allow it and Aptiv to each focus on their unique product portfolios.

EDS provides low- and high-voltage electrical architectures for automotive and commercial vehicle markets. Aptiv would retain the business that includes industrial components and an array of related products for sectors such as aerospace and telecommunications, among others.

Aptiv’s shares have gained more than 35% in New York trading since the January announcement, giving the company a market value near $18.5 billion.

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