View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
April 15, 2010

GERMANY: VW raises funds for Porsche takeover

Volkswagen AG has raised about EUR4.1bn (US$5.6bn) in net proceeds to finance its takeover of Porsche SE.

Volkswagen AG has raised about EUR4.1bn (US$5.6bn) in net proceeds to finance its takeover of Porsche SE.

VW sold 64.9m preferred shares at EUR65 (US$88) each, the company said in a statement. The shares rose EUR2.19 (US$2.97), or 3.2%, to EUR69.69 (US$94.63) in Frankfurt, valuing the carmaker at EUR33.3bn (US$45.5b).

Proceeds of the sale will go toward financing the takeover of Porsche SE’s car-making operations. VW agreed last August to merge with the sportscar maker after Porsche’s debt tripled to more than EUR10bn (US$13.5) following its own failed bid to buy VW.

VW has also bought a 19.9% stake in Suzuki Motor as it aims to overtake Toyota as the world’s largest carmaker.

Seperately Porsche said the new version of its Cayenne SUV will arrive at European showrooms early next month and chief executive officer Michael Macht noted orders had beaten expectations.

Speaking at the launch of the redesigned line at the Leipzig plant where the Cayenne is built, Macht said: “We’re looking at an incredibly high order intake from almost all markets. Orders are clearly exceeding our expectations.”

Porsche aims to double annual sales to 150,000 vehicles over the medium term, and benefit from savings from its merger with VW. The Cayenne shares its platform and many parts with VW’s Touareg.

Macht said that he expected sales to recover following the economic downturn. “Everything is suggesting that this negative trend seems to have ended. Improving deliveries and a 3.7% increase in first-half revenue are encouraging news that indicate that the end of the long drought is indeed in sight.”

He added that the “the essential legal and financial preconditions” for the merger of Porsche and VW have been achieved. “We’re on a good path to be able to forge a competitive, integrated carmaker in the course of next year.”

Porsche has reduced fuel consumption of the new Cayenne, with three of the SUV’s five versions using less than 10litres of petrol per 100km, Macht said. The Cayenne S hybrid version emits 193g of CO2 per km, the lowest of any of Porsche’s four model lines, he added.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Auto