Porsche shareholders have approved a capital increase worth EUR5bn (US$6.5bn) as part of a planned takeover by Volkswagen.
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The operation is expected to be completed by late May, though it could take until late August, and is designed to help Porsche reduce its debt burden of EUR6bn ahead of the takeover, news agencies reported.
VW already owns 49.9% of Porsche and wants to acquire the rest by next year but both companies have warned the deal might face delays.
The financial director of both companies, Hans Dieter Poetsch, told shareholders in Stuttgart he “could not guarantee the takeover by Volkswagen will take place just after the capital increase.”
In addition to tax issues, the operation could be held up by complaints filed by investors against Porsche, charging the company manipulated markets in 2008 when it tried to buy the much larger VW.
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By GlobalDataPlaintiffs have demanded several billion euros in damages and interest.
VW has nonetheless drafted an alternative plan to ensure it obtains a majority holding.
The aquisition of Porsche, which would become VW’s 10th brand, is aimed at helping the latter overtake Toyota as the world’s largest automaker by 2018.
