Lower Saxony is considering increasing its stake in VW after the Porsche IPO

Dusseldorf According to financial circles, the state of Lower Saxony is considering increasing its stake in Volkswagen. The government is internally discussing investing part of the money that would flow to it as a special dividend after the planned IPO of Porsche into the purchase of VW shares and Porsche preferred shares. Several people familiar with the situation told the Handelsblatt. Decisions have not yet been made. Lower Saxony declined to comment.

Last week, Volkswagen made the fundamental decision for a planned IPO for Porsche. The expected valuation of the sports car subsidiary is in a range of 60 to 80 billion euros. Volkswagen could receive 15 to 20 billion euros from the sale of a quarter of the shares, half of which the group intends to distribute to shareholders as a special dividend.

Lower Saxony owns 11.8 percent of VW’s share capital, mainly in the form of a 20 percent stake in the common shares. With a distribution of ten billion euros, the country would take up to a good one billion euros.