By on February 22, 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]

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10 Comments on “Volkswagen AG Pressing Potential Porsche IPO...”

  • avatar
    SCE to AUX

    IPO = a two-edged sword.

  • avatar
    SCE to AUX

    That hood panel gap is way better than on a Model 3, which always looks wonky at that angle.

  • avatar

    If you are curious like I was (I’m not anymore):

    “Dr. Ing. h.c. F. Porsche” stands for “Doktor Ingenieur honoris causa Ferdinand Porsche.” If we take each piece it’s a bit easier to put it together. “Dr. Ing.” is an acronym for “Doktor Ingenieur” or what we know as a “Doctor of Engineering” (in other words, the equivalent of a Ph.D.). And “honoris causa” simply means an “honorary degree” (Porsche was awarded his in 1917 by the Vienna University of Technology).

    Completely unrelated:

    [Honorary degrees can be rescinded? Who knew.]

    • 0 avatar

      You know who Archduke Franz Ferdinand is. But did you know who his chauffeur was? (Hint: also named Ferdinand)

      • 0 avatar

        From there he invented the…ahem…”ass-engined Nazi slot car”.

        • 0 avatar

          (More background if anyone is confused)

          Yes, 33 years ago in the pages of this magazine, I called the 911 an “ass-engined Nazi slot car.” I apologize. Not that the 911’s powerplant doesn’t loom behind its transaxle. And not that the 911’s progenitor, Ferry Porsche, wasn’t a utility infielder on the wrong team during the last World War. And not that a mistaken lift of a 911’s throttle won’t result in Aurora Plastics model-racetrack ess-bend behavior, except in 1:1 scale taking out the whole back wall of the hobby shop. Besides, to be precise, I was referring to a 930 Turbo, with love-handle fenders and looking like it had backed into a cocktail waitress and driven off with her serving tray. But I’m sorry.

  • avatar

    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.

  • avatar

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

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