BERLIN, Aug 5 Reuters Continental39;s executive board is examining in detail the spinoff and subsequent listing of its automotive unit on the Frankfurt stock exchange, the German company said on Monday.

The required steps for implementing a spinoff will be prepared in parallel, said the auto parts and tires maker.

The contract manufacturing division would also be part of the transaction, said Continental, which has been struggling with low profitability in its automotive supply for some time.

The aim of a spinoff would be to fully exploit the value and growth potential of the two then separate groups, it said.

The executive board is expected to decide on the spinoff in the fourth quarter based on the evaluation, Continental said.

The potential spinoff could then be submitted for approval at the annual shareholders39; meeting on April 25, with the plan possibly finalised by the end of next year, it said.

Reporting by Ilona Wissenbach, Writing by Miranda Murray, Editing by Rachel More

Source Reuters