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Hella's controlling shareholders consider selling stake - Manager Magazin

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BERLIN (Reuters) -The families that control Hella are considering selling their 60% stake in the auto parts maker, Germany's Manager Magazin reported on Tuesday citing several people familiar with the matter.

The magazine said the Hueck family has asked investment bank Rothschild to approach possible buyers for the stake, which has a market value of about 3 billion euros ($3.6 billion).

Under German regulations, any buyer of a 60% stake would have to make an offer for the remaining 40% of the company.

Shares in Hella, best known for making high-powered headlamps for cars, jumped as high as 12.7% and were on course for their biggest one-day gain since April 6 last year.

Hella, which traces its roots to a manufacturer of lanterns and horns for bicycles and carriages founded in 1899, declined to comment on the report by Manager Magazin.

Rothschild also declined to comment.

The magazine cited one financial source as saying the process was at an early stage and may not result in a deal.

The families floated Hella on the stock exchange in 2014 but held on to the 60% stake via a pool agreement which is due to run until at least 2024.

Hella's stock took a hit at the start of the coronavirus pandemic last year, slumping to almost 20 euros in mid-March from close to 50 euros at the start of 2020.

But the shares recovered thanks to a rebound in the auto sector and edged above 55 euros in January, their highest level since June 2018.

The Hueck family is among the 50 richest in Germany with assets worth about 4 billion euros, according to data compiled by Manager Magazin earlier this year.

($1 = 0.8274 euros)

(Reporting by Maria Sheahan; Additional reporting by Anneli Palmen and Arno Schuetze; Editing by Riham Alkousaa, Louise Heavens and David Clarke)