Volkswagen’s management and supervisory boards to discuss whether the Porsche listing should go ahead. Porsche SE owns 31.4% of Volkswagen and holds 53.3% of voting rights. Listing could raise up to 10.6 billion euros ($10.5 billion) if the valuation is higher than estimates.
Volkswagen’s management and supervisory boards will meet on Monday to talk about the long-awaited listing of Porsche at the end of September or the beginning of October.
As outlined in a February framework agreement, Volkswagen will decide whether or not to agree to the sale of 25% plus one ordinary share of Porsche AG to Porsche SE.
That would give the Porsche and Piech families, who own Porsche SE, a blocking minority. This would help them get more control over the company, which was started in 1931.
Porsche SE, which owns 31.4% of Volkswagen and 53.3% of voting rights, acknowledged Monday’s meeting in a separate statement. The listing’s launch is still subject to market developments and board deliberations.
Under the February framework contract, 25% of Porsche’s preference shares will be sold on the open market.
Reuters believes that even that might raise $10.55 billion if the brand’s valuation hits 85 billion euros.
According to Refinitiv data, the listing would be the largest in Germany and Europe since Enel SpA in 1999.
Under the plans, Volkswagen and Porsche SE would own all ordinary shares.
Some investors have questioned why Europe’s biggest automaker is going public at a time when there is war and oil prices are at record highs.
Henrik Schmidt, a governance expert at Volkswagen investor DWS, says shareholder families are putting their interests first....