Porsche Automobil Holding SE plans to stay the same Volkswagen AG is holding the status of billionaire Porsche and vehicle investment family piech is considering a range of financing options for a stake in the sports car brand’s listing plan.
Chief Financial Officer Johannes Lattwein said Porsche SE has a strong balance sheet and significant external funding potential. The company, whose main asset is a 53% stake in Europe’s largest carmaker, plans to buy a 25% stake in Porsche’s initial public offering worth up to 90 percent, according to Bloomberg Intelligence. billion euros ($99.1 billion).
“There are currently no plans to reduce Volkswagen shares,” Lattwein said on a call with reporters. The teams working on the IPO, the automaker’s biggest strategic move in years, have been “extremely attached.”
Volkswagen is continuing to prepare to list Porsche’s sports car business – one of the VWtheir main profit contributors – despite market volatility caused by Russia’s war against Ukraine. The move is part of VW’s effort to fund the industry’s biggest shift to tram and boost its market valuation. Lattwein said that negative effects from the war in Ukraine on the IPO cannot be ruled out.
Porsche has “an outstanding future ahead of us,” CEO Hans Dieter Poetsch, who is also the chairman of VW’s supervisory board, said on the call. “Cash flow is expected to grow further and a future-oriented investment policy from the company as well as an attractive payment policy can be expected.”
Under the terms of the deal, the VW and Porsche supply arrangements will continue to exist, Poetsch said.
The current terms of the IPO, which have yet to be finalized, will allow the Porsche and Piech family to withdraw direct influence over the 911 and Taycan manufacturers in what used to be their family business. Under the plan, this family would win 25% of the blocked minority shares plus one share.
Lattwein confirmed a special dividend proposed by Volkswagen that will help the Porsche and Piech families finance their direct stake in Porsche AG.
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