Volkswagen AG, Porsche SE in ‘advanced discussions’ about Porsche IPO
Volkswagen AG (VOWG_p.DE) and Porsche SE (PSHG_p.DE) have negotiated a framework agreement to prepare for an IPO of Porsche AG, the companies said on Tuesday, in the first confirmation by the players involved that a listing could be on the table.
A final decision had not yet been taken and the conclusion of an agreement must be approved by the management and supervisory boards, Volkswagen said.
The statements paved the way for what could be on of the largest ever listings in European history, with reports estimating a valuation of 45-90 billion euros ($51-$102 billion) for the luxury carmaker.
“Whether a Framework Agreement is concluded… is currently open and depends on the approval of both parties’ boards,” Volkswagen said.
Porsche SE said a transaction could include the acquisition of ordinary shares – which bestow voting rights upon the holder – of Porsche AG.
Both Volkswagen and Porsche SE shares gained as much as 10% to 192.48 euros and 88.8 euros respectively after a slight drop in early trade.
Speculation about a Porsche listing has lifted hopes on the stock market several times over the past year – but no decision has been made due to a complex stakeholder set-up.
Sources told Reuters last year the Porsche and Piech families, who own 31.4% of Volkswagen shares and have 53.3% of voting rights via Porsche SE, were weighing taking a direct stake in Porsche AG.
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.
