The sports car manufacturer can hardly be separated as an integral part of the VW world.
(Photo: imago images/Pius Koller)
Berlin The IPO of the sports car manufacturer Porsche is a nice idea at first glance. In the large Volkswagen group, Porsche is one brand among many; the value of the company is only reflected to a small extent in the stock market valuation of the whole. Once extracted and listed on the trading floor of the stock exchange, the true greatness of Porsche would become apparent. Corporations such as Siemens or Daimler have shown that this is the right way to go by splitting off subsidiaries.
In the case of Volkswagen, the question is appropriate as to who benefits from a Porsche IPO. The justification that this will increase VW’s share price to the right level is only pretended. The group is firmly in the hands of the Porsche/Piëch family and the state of Lower Saxony. For both sides, the price level is insignificant as they will remain invested for the long term.
The IPO of Porsche is above all a family project. She is the driver, also to correct the historic defeat of 2009. After the takeover of VW by the sports car manufacturer failed, the heavyweight incorporated itself into Porsche. Although the family became the largest shareholder in the merged company, their goal of complete acquisition had failed.
Porsche now wants Porsche back. With the IPO, the family wants to acquire shares in the sports car manufacturer, ultimately striving for control of Porsche. Evidence of this is that she is explicitly talking to Volkswagen about the acquisition of ordinary shares – i.e. shares with voting rights. What matters is that it is fair. And that’s where it gets complicated. Porsche is difficult to separate as an integral part of the VW world.
Top jobs of the day
Find the best jobs now and
be notified by email.
However, the personal ties between Volkswagen and Porsche SE weigh more heavily. This company is not to be confused with the car manufacturer Porsche AG; it is a holding company through which the family holds its majority stake in Volkswagen. With Hans Dieter Pötsch, Manfred Döss and Lutz Meschke, three of the four board members of Porsche SE come from the VW Group. Pötsch is even the head of the supervisory board and Döss is the legal director.
Dual function leaves room for complaints
There are also several members of the clan, which is the largest shareholder in the SE, on the VW Supervisory Board. As members of Volkswagen committees, this group will have to find a fair valuation for Porsche AG, which will then be at least partially taken over by Porsche SE, which they also control.
Even if things would be right, this multiple dual function offers scope for shareholder lawsuits. Since billions are easily at stake, this would weigh on the share price. The advanced goal of a price increase would not be achievable.
More: VW wants to take the sports car maker Porsche public – shares rise by around ten percent