Volkswagen Group to Drop $267 Million for Audi Stock Buyout
On Tuesday, Audi announced Volkswagen Group is prepared to buy out minority shareholders. VW announced the plan earlier in the year, setting aside funds to procure the 0.36 percent of Audi it didn’t already own.
“Volkswagen AG announced and specified that it has set the cash settlement to be paid to the minority shareholders in return for the transfer of their shares at 1,551.53 euros per Audi AG share,” the Ingolstadt-based manufacture said in a statement.
Refinitiv data shared by Reuters said the amount represents a healthy premium on top of the 1,050 euro share price. All told, VW will shell out 237 million euros ($267 million) for the 152,749 outstanding Audi shares. Following that exchange, it will own the whole shebang.
The stock transfer is slated to be passed at Audi’s next general meeting. That’s TBD on account of social distancing measures nobody is adhering to anymore. But the company anticipates the meeting taking place in August if it can’t schedule something for the latter half of July.
[Image: JL IMAGES/Shutterstock]
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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Compared to the billions they ante'd up for Dieselgate, this is like the kids allowance money.
"Because 99 and 64/100 percent is just not enough."
VWs next looming problem is a lack of manufacturing plants for Audi in the UK if a hard Brexit happens. I’m told by someone at BMW that the Barvarians are planning to send BMWs down Minis Oxford lines to get round tariffs. Mercedes meanwhile are eying up Nissans Sunderland plant. That leaves VWs Audi in a deeply uncompetitive position in a key market. My bet is they will try and swoop in for JLR before BMW get there first. It’s a win win for VW. VW get production capacity in the UK, JLR get VWs parts bin and similar access to European plants.
I was entertained that the German stock symbol for Audi is still NSU.