Volkswagen AG Pressing Potential Porsche IPO

by Matt Posky

Published: February 22nd, 2022

Volkswagen Group is apparently in talks with Porsche Automobil Holding SE about a potential initial public offering (IPO) for the Porsche luxury/sports brand. According to a statement from VW, the duo has already negotiated the agreed-upon frameworks and is in final discussions as to when they want to move forward.

Weeks of rumor preceded corporate confirmation, making it seem like the proposed deal was already a shoo-in. But any final decisions will still need to be approved by the management and supervisory boards — something Volkswagen Group said has yet to happen.

From VW:

Volkswagen AG and Porsche Automobil Holding SE are currently in advanced discussions regarding a potential IPO of Dr. Ing. h.c. F. Porsche AG. For this purpose, Volkswagen AG and Porsche Automobil Holding SE negotiated a Framework Agreement which should form the basis for further steps in the preparation of a potential IPO of Dr. Ing. h.c. F. Porsche AG.

The conclusion of the Framework Agreement is subject to the approval of the Management Board and the Supervisory Board of Volkswagen AG. A final decision have not yet taken.

Whether a Framework Agreement is concluded and its content as well as the question if an IPO of Dr. Ing. h.c. F. Porsche is being further assessed, is currently open and depends on the approval of both parties’ boards.

The media has been talking about a Porsche IPO for years, so everyone is expect it to be huge. As a result, the mere suggestion that the brand could go public sent Volkswagen shares up by roughly 10 percent before the day was through.

Bloomberg reported, citing unnamed sources, that investors would likely be offered about 25 percent of non-voting shares in Porsche while the Porsche–Piëch family scoops up a minority blocking stake. It estimated the hypothetical listing resulting in a brand value of 85 billion euros, making everyone very rich while also helping to smooth over Volkswagen’s prolonged history of internal power struggles.

The timeline for the IPO is anybody’s guess. But Bloomberg, which seems to have a lot of knowledge on the subject, suggested that we could see a listing by the second half of 2022. Frankly, it seems more plausible than any claim that VW’s corporate structure will suddenly be made less hectic. Both the State of Lower Saxony and Qatar Investment Authority own sizable shares of the automaker and government influence has a tendency to muddle these kinds of negotiations. Though Porsche SE holds the majority with 53.3 percent of Volkswagen Group.

[Image: Tishomir/Shutterstock]

#IndustryNews #InitialPublicOffering #Investments #Ipo #Piech #Porsche #PorscheAG #PorscheAutomobilHoldingSE #PorscheSE #Stocks #VW #Volkswagen #VolkswagenAg #Stonks #VolkswagenGoup

Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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Inside Looking Out on Feb 22, 2022

Why are they doing that? They should hire some MBAs from elite American schools. They would propose to rebadge VW Golf as Porsche 911 and add some appliques for excitement.

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- Jeff S on Feb 22, 2022
  
  Some of the ex-gmers have a lot of experience in rebadging. Anyone that can turn a Cavalier into a Cadillac or a Fairmont into a Lincoln (looking at you Ford).
  
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Inside Looking Out on Feb 22, 2022

And the next will be Porsche pickup truck based on Nissan Frontier or Ram.

Like Reply
- Jeff S on Feb 22, 2022
  
  With VW's connection with Ford it will likely be a Ranger or Maverick which wouldn't entirely be bad.
  
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