Porsche sells 10 percent voting stake to Qatar
Porsche (PSHG_p.DE) was forced to sell a 10 percent voting stake to Qatar Holding LLC as a way to prop up its strained finances, marking a climbdown for a predator that had once sought to dominate Volkswagen (VOWG.DE).
The Qatar sale gives outsiders a say in the debt-saddled family-controlled auto group for the first time since it started building Porsche branded cars in 1948 and comes just after it was forced to sell part of its sportscar business to VW.
Porsche is selling a 42 percent stake in Porsche AG for about 3.3 billion euros ($4.7 billion) and also sold a package of cash-settled options on VW shares to Qatar which the company said would free up 1 billion euros in cash for Porsche.
The derivatives deal will give Qatar access to a 17 percent stake in Volkswagen, Europe's biggest car maker, a person familiar with the deal said.
Volkswagen said it would add the Porsche marque as a 10th brand to its stable that already includes Audi, Bugatti, Bentley, Lamborghini, Skoda, Seat and Scania.
"The journey has been anything but easy. Up until the last couple of days there have been tough and sometimes emotional disagreements. But that time is now behind us," said Volkswagen Chief Executive Martin Winterkorn, who was also named Porsche CEO late on Thursday.
VW's ordinary shares fell 15.6 percent to close at 190.70 euros, having dropped as low as 165.00 euros during the day. Porsche shares rose 8.7 percent to close at 48.50 euros.
Porsche sells 10 percent voting stake to Qatarn| Dealsn| Reuters
The Qatar sale gives outsiders a say in the debt-saddled family-controlled auto group for the first time since it started building Porsche branded cars in 1948 and comes just after it was forced to sell part of its sportscar business to VW.
Porsche is selling a 42 percent stake in Porsche AG for about 3.3 billion euros ($4.7 billion) and also sold a package of cash-settled options on VW shares to Qatar which the company said would free up 1 billion euros in cash for Porsche.
The derivatives deal will give Qatar access to a 17 percent stake in Volkswagen, Europe's biggest car maker, a person familiar with the deal said.
Volkswagen said it would add the Porsche marque as a 10th brand to its stable that already includes Audi, Bugatti, Bentley, Lamborghini, Skoda, Seat and Scania.
"The journey has been anything but easy. Up until the last couple of days there have been tough and sometimes emotional disagreements. But that time is now behind us," said Volkswagen Chief Executive Martin Winterkorn, who was also named Porsche CEO late on Thursday.
VW's ordinary shares fell 15.6 percent to close at 190.70 euros, having dropped as low as 165.00 euros during the day. Porsche shares rose 8.7 percent to close at 48.50 euros.
Porsche sells 10 percent voting stake to Qatarn| Dealsn| Reuters
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