Volkswagen AG and Porsche have negotiated a framework agreement to prepare for an IPO public offering, the two companies said today, in the first confirmation from stakeholders that an IPO is on the table.
The final decision has not yet been made and the agreement must be approved by the boards of directors and supervisors of both companies, Volkswagen said.
These statements paved the way for the largest -if it goes- public record in European history, with reports talking about a valuation of the luxury car company, at 45-90 billion Euros.
“Whether a framework agreement will be completed is currently open and depends on the approval of the boards of both companies,” Volkswagen said.
Porsche said the transaction could include the acquisition of common stock (which gives voting rights to the holder) of Porsche AG.
Speculation about a Porsche IPO has raised hopes several times in the stock market over the past year, but no decision has been made because of the complex structure of shareholders.
Sources told Reuters last year that the families of Porsche and Piech, which control 31.4% of Volkswagen and own 53.3% of the company through Porsche, are considering a direct stake in Porsche.
Such a move would loosen family control at VW, in favor of direct ownership of the sports car brand founded by Ferdinand Porsche in 1931.
Source: Capital
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