The sports car manufacturer is to go public.
(Photo: AP)
Dusseldorf Volkswagen wants to take its Porsche subsidiary public. The VW Group announced on Tuesday that it was “in advanced talks with Porsche SE about a possible IPO of Porsche AG”. A cornerstone agreement is being negotiated, but a final decision has not yet been made. The decision depends on the approval of the Management Board and the Supervisory Board.
The Porsche and Piëch owner families bundle their shares in the group network in the Holding Porsche SE. The holding company is not to be confused with the sports car manufacturer itself, which is located as Porsche AG under the VW group umbrella. The Holding Porsche SE holds a good 53 percent of the voting rights in the Volkswagen Group. There has been speculation for a long time about a possible IPO of the high-yield Porsche.
“Of course we register that there is great interest from the public and in the markets. The decision on this lies solely with the Volkswagen Group,” Porsche boss Blume recently explained in an interview with the Handelsblatt.
Volkswagen preferred shares jumped 8.5 percent after the announcement. The shares of Porsche SE also increased by around 10 percent. Volkswagen could use the proceeds from an IPO to finance the development of new electric models and digital software platforms.
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The investment bank Stifel values Porsche AG at around 45 billion euros. According to financial circles, it was recently said that Volkswagen wanted to take up to 49 percent of the subsidiary public. According to internal plans, the group would retain the majority. The owner family could have a right of first refusal with their Porsche Automobil Holding SE. As a result, she would significantly increase her power at the sports car manufacturer through the double participation in Porsche and Volkswagen.
More: The Porsche/Piëch family is examining the sale of part of their stake in VW – in order to put the money into Porsche