Volkswagen and top investor move closer to Porsche IPO

  • VW, Porsche SE negotiated framework agreement
  • Management and supervisory boards need to approve
  • Experts see Porsche value at 45-90 bln eur
  • Porsche SE up 12%, Volkswagen up 10%

Volkswagen and its top shareholder have drawn up a preliminary agreement to list Porsche, paving the way for a deal that investors expect to unlock value in the luxury car brand and could be one of the world’s biggest share sales.

Shares in both Volkswagen and Porsche SE jumped about 10% on Tuesday after their statements brought a long-mooted initial public offering (IPO) for Porsche AG a step closer.

A final decision has not been taken and any deal must be approved by management and supervisory boards, Volkswagen said.

Hopes of a listing rose earlier this month after a Reuters story suggested news on the matter could come soon.

Depending on the size of a share sale, a listing of Porsche AG could be one of the largest in Europe with valuation estimates of up to 90 billion euros ($102 billion).

“Whether a Framework Agreement is concluded is currently open and depends on the approval of both parties’ boards,” Volkswagen said.

Porsche SE, which owns 31.4% of Volkswagen and has 53.3% of voting rights, said in a separate statement a transaction could include it buying ordinary shares in Porsche AG, which bestow voting rights upon the holder.

Sources previously told Reuters that the Porsche and Piech families, who control Porsche SE, were weighing taking a direct stake in Porsche AG in a possible listing.

Such a move would loosen the grip of the families on Volkswagen, in favour of direct ownership of the sports car brand founded by their ancestor Ferdinand Porsche, which dates back to 1931.

($1 = 0.8820 euros)


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