FRANKFURT — Daimler will keep a 35% stake in the vans division it options to spin off this yr, the luxury carmaker said on Friday, providing additional details on a landmark company break up it hopes will boost share values.

The spinoff of Daimler Truck Keeping AG as a separate listed entity, 1st declared in February, will be voted on by Daimler shareholders at an extraordinary basic conference on Oct. 1.

They will receive just one share in the vans division for each two Daimler shares they individual.

Daimler, in turn, will be renamed Mercedes-Benz Group AG to mirror its focus on the motor vehicle and van company, together with the Mercedes-Benz brand name, and attempts to challenge Tesla and other rivals in the sector for electric premium autos.

“Daimler’s realignment tends to make just one good results story into two,” Daimler Main Executive Ola Kaellenius said.

“With this courageous phase into a new foreseeable future, we are developing included worth with two pure-engage in providers for our consumers, staff members, shareholders and partners.”

Daimler will deliver Daimler Truck Keeping AG with internet liquidity of five billion euros ($five.nine billion) right up until the stop of the yr, when the truckmaker’s shares are expected to get started investing, so that it can reach an expenditure-quality score.

Spinoffs, below which existing shareholders get shares in the new auto for cost-free, have been a distinguished way for big organizations to unlock worth and answer to buyers demanding a sharper company product.

Daimler shares are up about seventeen% since the spin-off announcement, in line with the broader European automotive sector.

“Up right up until now, we experienced to journey in a convoy. In the foreseeable future, we will be able to program our individual route and decide on the best route for us,” said Martin Daum, selected chief govt of Daimler Truck Keeping AG.

Of the 35% Daimler options to retain in the division, which is the world’s major truck and bus maker and will be a contender for Germany’s blue-chip DAX index, five% will be transferred to the carmaker’s pension fund.

As of Jan. 1 2021, Daimler Truck Keeping AG shareholders’ fairness on a pro-forma basis stood at about eleven.1 billion euros, equal to an fairness ratio of 22%, Daimler said.