Volkswagen Group eyes Porsche sell-off

Volkswagen – which last year offloaded its Bugatti marque and looked to sell Lamborghini – could list its German sports car maker to raise funds for electric vehicle development.

German sports car maker Porsche could be partially sold off via IPO, majority stakeholder Volkswagen AG has revealed. 

An IPO – short for ‘Initial Public Offering’ – is a process through which parts of a company are tendered to investors in the form of shares to raise capital.

Analysts contact by Bloomberg estimate the Porsche brand could be valued by the market at as much as €85 billion ($AU133 billion). For reference, Volkswagen currently has a market capitalisation of approximalty €116 billion ($AU181 billion).

“Volkswagen AG and Porsche Automobil Holding SE [the Porsche family stakeholders] are currently in advanced discussions regarding a potential IPO of Dr. Ing. h.c. F. Porsche AG,” the German automotive giant said in an official statement. 

“For this purpose, Volkswagen AG and Porsche Automobil Holding SE negotiated a Framework Agreement which should form the basis for further steps in the preparation of a potential IPO … The conclusion of the Framework Agreement is subject to the approval of the Management Board and the Supervisory Board of Volkswagen AG. A final decision have not yet taken.”

The reason for the move is not yet clear, however in recent years Volkswagen has floated the idea of selling off assets to fund its ID electric vehicle research and development programs.

Last year the Volkswagen Group offloaded its Bugatti marque through a complicated deal with Croatian electric car maker Rimac, and international reports suggest it may still be looking to list Lamborghini.

Overseas reports suggest 25 per cent of the Porsche company would likely be sold through the IPO, and it’s likely the Volkswagen and the Porsche family would retain their current controlling share of the marque.

A spokesperson for Porsche Australia declined to comment on the reports. This story will be updated when more information becomes available. 

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