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Volkswagen has set price diversity for the multibillion-dollar sale of a minority stake in the Porsche luxury logo as it prepares an initial public offering to fund VW’s investments in new technologies and businesses, adding electric cars, software and services.
The German automaker said it was targeting a board on the Frankfurt Stock Exchange on Sept. 29 after buying up to 25 percent of the non-voting shares of Porsche AG, maker of the 911 sports car and Cayenne SUV, with investors.
Qatar Investment Authority has pledged to gain 4. 99%, with smaller stakes for Norges Bank Investment, T. Rowe Price and ADQ.
The diversity of value according to the percentage of preference was set at 76. 50 € (dollars) to 82. 50 €, which translates into 8710 million euros to 9390 million euros. So that the participation in the IPO represents 12. 5% of the company.
The deal also includes the sale of 25% plus a percentage at a premium of 7. 5% to Porsche Automobil Holding SE, Volkswagen’s majority shareholder representing the Porsche and Piech families.
Under the maximum price, the total obtained through the sale of shares and shares would be 19,500 million euros, of which 49% would be paid as a dividend to shareholders, while the rest would be allocated to the company’s investment objectives.
Volkswagen has introduced a major push into electric cars and says long-term gains will come from investments in cars, software and electric services, as classic internal combustion cars occupy a smaller share of the market.
The automaker says the deal will give Porsche more “business autonomy,” but it will still come fully with Porsche in its financial statements. VW added that the existing commercial cooperation between Volkswagen and Porsche “will continue in general terms. “
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