AUMOVIO Spinoff Gets AUMOVING- Continental Completes Spinoff Of AUMOVIO

As we discussed previously, Continental AG(CTTAY) completed its spinoff of AUMOVIO and shares began trading in Frankfurt today. AUMOVIO is an automotive behemoth with nearly 20 Billion Euro in annual sales. The company has no debt and 1.5 Billion Euro in cash. AUMOVIO hopes to increase its adjusted EBIT margin from 2.7% in the first half of 2025 to 6-8% while growing annual sales to 24 Billion Euro. If it is able to do so, shareholders should be richly rewarded.

Continental shareholders received one share of AUMOVIO for every 2 shares held.  While AUMOVIO began trading in Frankfort today, September 18, 2025, ADRs may take a few days to begin trading on the US OTC market.

AUMOVIO has established a sponsored Level I American Depositary Receipt (ADR) program with Deutsche Bank Trust Company Americas (Deutsche Bank). The Level 1 ADR program trades on the US over-the-counter (OTC) market under the ticker symbol (will be shared by FINRA on September 19th, 2025). The program is not listed on a U.S. stock exchange. 5 ADRs represents 1 AUMOVIO share.

The ticker has now been assigned, and the ADRs will trade under the AMVOY ticker. Note that each ADR is 1/5th of a share.  Continental’s ADRs are 1/10th of a share, the differential accounted for by the fact that the spinoff distribution ratio was 1 for 2.

Bloomberg adds color from several analysts:

Aumovio shares traded at €36.60 ($43.19) as of 3:15 p.m. in Frankfurt, giving the new stock a market valuation of about €3.7 billion. The opening price was slightly disappointing, Bernstein analyst Harry Martin said, and the market capitalization was below his sum-of-the-parts valuation for the company.

“The majority of conversations I had with investors showed that the bigger interest was in the remaining company,” Martin said. “The structural headwinds around the automotive industry make it difficult for Aumovio.”

Continental carved out its auto-parts unit and is looking to sell its industrial unit ContiTech next year as it refocuses on its tires business, reversing decades of expanding its portfolio. It’s one of several strategic shakeups reordering Europe’s automotive industry, which is contending with mounting trade hurdles, intensifying competition from China and high labor and energy costs in Europe.

Continental shares were changing hands at €57.56 apiece, as it traded for the first time without the right for investors to receive shares in the spinoff. Taken together, the two stocks were trading above the level Continental had closed at on Wednesday, according to Bloomberg calculations —indicating a positive reaction to the spinoff overall.

“The tire business is the true cash cow of the group, thus we believe a higher valuation is warranted,” Morningstar analyst Rella Suskin said.

It seems clear that investors are more excited about the Continental tire business then AUMOVIO’s auto-parts business. But with a clean balance sheet, cash, and a laser focus on improving profitability, AUMOVIO might just AUMOVE your portfolio to new heights.

Disclosure: The author holds no position in any stock mentioned