Volkswagen AG (OTC:VWAGY) shareholder Porsche Automobil Holding SE (OTC:POAHY) supports plans to list luxury sportscar maker Porsche AG. Still, the conflict in Ukraine could affect the timing of the proposed IPO, reported Reuters.
Volkswagen aims to conduct the Porsche initial public offering (IPO) in 4Q22, though that may change if the conflict in Ukraine drags on, Porsche SE's CFO mentioned.
"We cannot rule out, if the conflict lasts a longer time, that this could have potential implications on the listing," Johannes Lattwein told a news conference without elaborating on how it would affect plans. The company said that no final decision had been made on the proposed IPO.
Porsche SE and Volkswagen AG entered a cornerstone agreement. Under this, the share capital of Porsche AG shall be divided into 50% ordinary shares and 50% preference shares. Volkswagen intends to place up to 25% of preference shares in the capital market. At the same time, Porsche SE shall acquire 25% plus one share of the ordinary shares in Porsche AG.
"Due to the leading positioning of Porsche AG in the sport and luxury segment, this attractive investment would diversify our portfolio and our dividend inflows," Lattwein said.
Porsche SE reported FY21 group result after tax of €4.6 billion ($5.06 billion). Net liquidity of the Porsche SE Group came to €641 million as of 31 December 2021, compared to €563 million in the prior year.
It expects group results after tax in FY22 to be between €4.1 billion and €6.1 billion, not including the impact of the possible Porsche IPO.
Price Action: VWAGY shares closed higher by 2.12% at $24,59 and POAHY higher by 1.09% at $9.29 on Monday.
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