Volkswagen and its first shareholder, the family holding Porsche SE, have unveiled the terms of a possible IPO of the sports car manufacturer Porsche.
FRANKFURT (Reuters) – Volkswagen and its biggest shareholder, the family-owned Porsche SE, unveiled terms on Thursday for luxury carmaker Porsche’s possible IPO, a further step towards what could be one of the important introductions in stock market history.
In the event that a public offering is launched, the capital of Porsche AG will be divided equally between ordinary shares and preference shares and up to 25% of the preference shares will be placed on the market, Volkswagen said, confirming information previously published by Reuters.
Such an operation would involve a free float of up to 12.5% of the total capital of Porsche AG, for an amount of more than 10 billion euros on the basis of a valuation of approximately 90 billion euros.
The common shares, which would all be in the hands of Volkswagen and Porsche SE under the plan, would not be listed on the stock exchange, a spokesman said.
“The automotive industry is fundamentally changing. Volkswagen is determined to play a leading role in a world of zero-emission and autonomous mobility,” said Volkswagen CEO Herbert Diess.
“An IPO of Porsche AG would provide us with additional flexibility to further accelerate the transformation. Porsche AG would benefit from increased entrepreneurial freedom while continuing to benefit from group synergies.”
According to the framework agreement, Porsche SE, which owns 31.4% of the capital and 53.3% of the voting rights of Volkswagen, would buy 25% plus one share of ordinary shares of Porsche AG from Volkswagen at a premium of 7.5 % on the placement price of the preferred shares.
This assembly would ensure the Porsche and Piëch families, who control Porsche SE, a blocking minority in the luxury manufacturer, founded by their common ancestor Ferdinand Porsche in 1931.
Volkswagen said it would propose that its shareholders, which include Qatar and the German state of Lower Saxony, receive 49% of the gross proceeds from the placement of Porsche AG shares.
Qatar, which owns 14.6% of Volkswagen’s shares and 17% of voting rights, would also become a strategic investor in Porsche AG via preferred shares in the event of an IPO, Volkswagen added.
Lower Saxony Minister-President Stephan Weil said the state supports the framework agreement.
(Report Christoph Steitz, with Zuzanna Szymanska; French version Marc Angrand)
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