Volkswagen continues its plan: what happens to the listing of the Porsche brand

The family of billionaire Porsche and Piech considers its 53% stake in VW as a core investment.

Billionaire Porsche and the Piech family plan to keep their majority stake in the Volkswagen Group intact after listing VW’s Porsche sports car business.

The Porsche and Piech family owns 53% of the shares of the VW Group through their family investment vehicle, Porsche Automobil Holding SE.

Porsche SE intends to buy a 25% minority lockout package in an initial public offering planned by Porsche, valued at 90 billion euros.

Porsche SE has a strong balance sheet and significant potential to raise external capital, said CFO Johannes Lattwein.

“There are currently no plans to reduce Volkswagen’s shareholding,” Lattwein said.

The teams working on the IPO, the VW Group’s largest strategic move in recent years, have been “extremely involved,” he said.

VW is continuing preparations to list Porsche sports car operations – one of the main contributors to VW’s profit – despite market volatility triggered by Russia’s war against Ukraine.

Everything for electrification

The move is part of VW’s efforts to fund the industry’s largest transition to electric vehicles and increase its market valuation. The negative implications of the Ukrainian war for IPOs cannot be ruled out, Lattwein said.

Porsche SE has “an extraordinary future ahead,” said CEO Hans Dieter Poetsch, who is also chairman of VW’s supervisory board.

“Cash flow is expected to grow further and a forward-looking investment policy can be expected from the company, as well as an attractive payment policy.”

Under the terms of the agreement, supply agreements between VW and Porsche will continue to exist, Poetsch said.

The current unfinished IPO conditions would allow the Porsche and Piech family to regain direct influence over the sports car brand in what was their family business.

According to the plan, the family would win a 25% minority blocking package plus one share.

Lattwein confirmed that a special dividend proposed by VW would help the Porsche and Piech families to finance their direct participation in the brand.