The Gulf emirate of Qatar expects to announce the outcome of talks on buying a 25% stake in Porsche in early July, prime minister Sheikh Hamad bin Jassem al-Thani told the Gulf Times today.
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“We are still discussing the stake. According to the legal agreement between the two parties, neither of them is allowed to disclose any information about it before it is sealed,” said the premier.
Porsche amassed some EUR9bn (US$12.3bn) in debt building up a 51% stake in Volkswagen and needs to reduce that burden otherwise it will face a possible merger with VW and become another brand in the VW empire.
A majority of members in the Porsche and Piech families, which control Porsche, are said to back a deal for Qatar to acquire a stake although it would mean them giving up control of their business.
Qatar’s interest in Porsche highlights the increasing role of Arab states in German carmakers after Abu Dhabi’s state-owned IPIC bought a 9.1% stake in Daimler in March, making it the largest shareholder after Kuwait.
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By GlobalDataSheikh Hamad said the Qatar Investment Authority made a profit of between $7bn and $8bn in the first quarter of 2009.
