FRANKFURT (Reuters) – Volkswagen late Sunday revealed prices for Porsche AG’s planned initial public offering, giving the luxury sports car division a valuation of up to 75 billion euros ($74.97 billion).
Here are basic facts about the structure of the planned landmark list:
– Porsche’s capital is divided into two parts, 455.5 million common shares and the same number of preferred shares, totaling 911 million shares, which is a manipulation of the company’s most famous model.
Ordinary shares have voting rights, which is important when it comes to the question of who controls the company.
Preferred shares do not carry voting rights, but their owners will receive an additional dividend of €0.01 per share in addition to all dividends paid by the company on its common shares.
– Porsche shares are expected to start trading on the Frankfurt Stock Exchange on September 29.
What does Volkswagen sell?
As part of the deal, Volkswagen plans to sell a 25% plus one common stake in Porsche AG to Porsche SE, the holding company controlled by the Porsche and Porsche families, effectively giving them a blocking minority in the namesake brand.
Volkswagen also plans to sell 25% of the preferred stock in the market. Qatar, Volkswagen’s third-largest shareholder, has already committed to buying 4.99%, leaving another 20.01%, or 10% of Porsche’s total capital, to other investors.
The sovereign wealth funds of Norway and Abu Dhabi and mutual fund company T. Rowe Price also committed to buying €1.8 billion of preferred stock between them.
– Porsche SE, the largest shareholder in Volkswagen and holder of the majority of voting rights in Europe’s largest carmaker, has pledged to pay a premium of 7.5% on its common shares over the subscription price of the preferred stock.
How much will Volkswagen get?
Volkswagen’s revenue from the sale of common and preferred shares will range between €18.1 billion and €19.5 billion.
In the event of a successful initial public offering, Volkswagen will call an extraordinary shareholder meeting in December at which it will propose paying 49% of total proceeds, or €8.9 billion – €9.6 billion, to its shareholders in early 2023 as a special dividend.
Who will control PORSCHE AG?
Volkswagen AG (OTC 🙂 and Porsche SE together will own all common shares of Porsche AG at 75% minus 1 share – 25% plus 1 share.
– In general, Volkswagen AG will own 75% minus an ordinary share of the total share capital of Porsche AG after the IPO.
Porsche SE will own 12.5% plus one ordinary share of the total share capital of Porsche AG, while Qatar will own 2.5%.
The remaining 10% will be free.
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