Porsche SE buys shares for 7 billion euros after IPO

Dhe return of Porsche AG to the stock market is considered the second largest IPO in German history. If you add up the entire transaction, it even exceeds Telekom’s record volume of 1996 of a good 10 billion euros. Because the initial listing of the non-voting preferred shares of Porsche AG last Thursday on the Frankfurt Stock Exchange was only the public part of the transaction for Volkswagen with issue proceeds of 9.4 billion euros. However, this is linked to a second sale of shares that will not be processed via the stock exchange. This was now completed on Tuesday: Porsche Automobil Holding SE bought 17.5 percent plus one share of Porsche ordinary shares from Volkswagen for a good 7 billion euros, as the company announced on Tuesday. A second part of a further 7.5 percent will follow in January for a good 3 billion, so that the Porsche SE then holds 25 percent plus one share of the Porsche ordinary shares and thus has a blocking minority.

The ordinary shares of Porsche SE are wholly owned by the Porsche and Piëch families. With the transaction that has now taken place, the families now have direct access to “their” company again for the first time after losing Porsche independence in 2008/2009. is the Chairman of the Supervisory Board of Porsche SE Wolfgang Porsche, his deputy is Hans Michel Piëch. The non-voting preferred shares of Porsche SE are listed and have been included in the Dax for a good year.

The SE’s most important holding is the majority of voting rights in Volkswagen AG (53.3 percent). Now comes the purchase of shares in the Porsche AG a second major contribution to it. The previously debt-free Porsche SE is initially financing the 7.1 billion euros to be raised in the first step via bank loans. “We have agreed on tranches of up to five years, with maximum flexibility and unscheduled repayment options,” says Johannes Lattwein, CFO of Porsche SE, who, together with Porsche SE CEO Hans Dieter Pötsch, conducted the negotiations to acquire the Porsche ordinary shares with Volkswagen Has.

Promissory note and bond planned

At the end of this year or the beginning of next year, some of the loans are to be replaced by issuing a promissory note on the capital market. Bonds could also be placed on the capital market in the future. “We want to use this to finance ourselves more independently of banks,” says Lattwein. The loan agreement was made with the American JP Morgan, Deutsche Bank, the Spanish Banco Santander, the French Credit Agricole, the Dutch ING, and the Italian Unicredit. The later going on the capital market with promissory notes and bonds should also be accompanied by these banks, among others.

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