German based automobile maker Porsche Automobil Holding SE (ETR: PAH3) which is also the largest shareholder in fellow car maker Volkswagen AG (ETR: VOW3) says that it approves a proposed plan by Volkswagen for an initial public offering (IPO) of luxury sportscar maker Porsche AG.
Porsche SE made this announcement on March 29 the automobile maker was quick to acknowledge that no final decision on the matter has yet been arrived at.
Volkswagen came up with this IPO proposal last month, the plans entails selling 25% plus 1 ordinary share in the carmaker to Porsche SE as well as listing up to 25% of Porsche AG’s preferred stock.
In addition, the plan also includes paying out 49% of IPO proceeds to the stakeholders in Volkswagen. Porsche made the announcement during a meeting in which it was reporting its annual results.
“Porsche SE thereby supports the plans of Volkswagen AG to expand its financial flexibility and accelerate the technological transformation of the group. Due to the leading positioning of Porsche AG in the sport and luxury segment, this attractive investment would diversify our portfolio and our dividend inflows” said Porsche SE.