25 percent to the market: VW is examining the feasibility of a possible IPO by subsidiary Porsche

According to a framework agreement negotiated with Porsche Automobil Holding SE, the share capital of Dr. Ing. hc F. Porsche AG will be divided into 50 percent preference shares and 50 percent ordinary shares and up to 25 percent of the preference shares will be placed on the capital market, the Wolfsburg car group announced. Porsche Holding would also acquire 25 percent plus one share of the ordinary shares in Dr. Ing. hc F. Porsche AG from Volkswagen AG at the placement price of the preference shares plus a premium of 7.5 percent.

Volkswagen emphasized that it intends to continue fully consolidating Porsche AG even after an IPO. In addition, the industrial cooperation between Volkswagen AG and Dr. Ing. hc F. Porsche AG will also be continued after a possible IPO. The DAX group would use the income from a Porsche IPO to finance its industrial and technological transformation and further growth.

In addition, it has been agreed that, in the event of a successful IPO, Volkswagen AG will propose to the shareholders that a special dividend of 49 percent of the total gross proceeds from the placement of the preference shares and the sale of the ordinary shares be distributed.

VW pointed out that the feasibility of an IPO depends on various parameters and general market conditions and that no final decision has yet been made.

In a separate announcement, Porsche Automobil Holding SE stated that it would continue to examine and fundamentally support the feasibility of a possible IPO by Porsche AG on the basis of the talks to date.

FRANKFURT (Dow Jones)

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