Volkswagen Reflects Porsche IPO to Help Fund Electric Switch – Reports | Porsche

Volkswagen is still considering a public listing of its luxury sports car brand Porsche, according to reports, as it seeks to raise capital for an expensive switch to electric vehicles.

Estimates of what Porsche could be worth as a standalone company are between 45 and 90 billion euros (38 and 77 billion pounds).

Speculation over what could be a record-breaking Porsche list surfaced during the year, but no decision was made, due to a complex setup of stakeholders, sources told the agency. Reuters press, adding that it was not clear whether a listing would take place.

Earlier, the German business newspaper Handelsblatt reported that the Porsche and Piëch families, which control Volkswagen’s largest shareholder, Porsche SE, are considering selling part of their stake in VW to fund a substantial stake in a possible IPO. from Porsche.

The families, who own 31.4% of Volkswagen shares and 53.3% of voting rights through Porsche SE, could sell enough shares to raise around € 15 billion, the German newspaper said.

They would remain the largest shareholder of Volkswagen, added the Handelsblatt, ahead of the state of Lower Saxony, which holds 11.8% of the capital and 20% of the voting rights.

Porsche SE called the report “pure speculation”, without commenting further. Volkswagen declined to comment.

Volkswagen’s preferred shares, which have fallen significantly in recent weeks due to a fight against leadership, closed 8.6% higher at the top of the German benchmark DAX. Porsche SE shares closed 8.5% higher.

The proposed ownership reshuffle would loosen the hold of the Porsche and Piech families over Volkswagen, Europe’s largest automaker, in favor of direct ownership of the sports car brand founded by their ancestor Ferdinand Porsche, which dates back to 1931.

Asked about a possible listing of Porsche in October, its chief executive, Herbert Diess, said Volkswagen was constantly reviewing its portfolio, but made no further comment.

Diess will likely remain VW CEO, although he will cede some responsibilities following a clash with union leaders, two sources familiar with the matter told Reuters.

Comments are closed.