Volkswagen explores the IPO of luxury car company Porsche-source

FILE PHOTO: The Volkswagen logo is painted on the production line at the Volkswagen factory in Wolfsburg
FILE PHOTO: The Volkswagen logo is painted on the production line at the Volkswagen factory in Wolfsburg, Germany March 1, 2019. Photo taken March 1, 2019. REUTERS / Fabian Bimmer / File Photo

December 7, 2021

BERLIN/HAMBURG (Reuters) – Volkswagen is still looking to go public with a possible luxury car brand Porsche AG as a way to finance a costly shift to software and electric vehicles, two People familiar with the matter told Reuters on Tuesday.

Sources say rumors of a Porsche listing, which could be a record IPO, have surfaced this year, but no decision has been made due to the complicated arrangement of the parties involved. , the sources added that it is not yet clear whether the listing will happen.

The listing possibility reports for this unit have included an independent valuation of Porsche AG of between 45 billion euros and 90 billion euros ($101 billion).

Earlier, Handelsblatt reported that the Porsche and Piech family, who control Porsche SE, Volkswagen’s largest shareholder, were considering selling a portion of their VW shares to finance a substantial share purchase. in a possible Porsche IPO.

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

It will remain Volkswagen’s largest shareholder, Handelsblatt added, ahead of the state of Lower Saxony, which holds an 11.8% stake and 20% voting rights.

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

Volkswagen preferred stock, which has fallen significantly in recent weeks due to the leadership controversy, closed up 8.6% to top Germany’s benchmark DAX index.

Shares of Porsche SE closed 8.5% higher.

People familiar with the matter told Reuters in May that families were prepared to participate directly in Porsche direct-stake-possible-porsche -ipo-sources-2021-05-31 AG so the luxury automaker is listed separately.

Such a move would loosen families’ grip on Europe’s biggest carmaker Volkswagen, in favor of direct ownership of the sports car brand founded by their ancestor Ferdinand Porsche, was born in 1931.

When asked about the possibility of a Porsche listing in October, CEO Herbert Diess said Volkswagen is constantly reviewing its portfolio, but did not comment further.

Diess will likely stay on as VW CEO although he will relinquish some responsibilities following clashes with labor leaders, two sources familiar with the matter told Reuters.

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(Reporting by Victoria Waldersee, Ilona Wissenbach, Jan Schwartz, Pamela Barbaglia and Christoph Steitz; Editing by Madeline Chambers and Alexander Smith) Volkswagen explores the IPO of luxury car company Porsche-source

Bobby Allyn

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