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Porsche SE and Volkswagen AG emanate Integrated Automotive Group

Boards pass judgment for accelerated origination of a Integrated Automotive Group between Porsche and Volkswagen / One-time certain outcome on gain / Porsche SE as financially clever holding association continues to be significantly concerned in expansion of Volkswagen AG

Stuttgart, 4 Jul 2012. Porsche Automobil Holding SE (Porsche SE), Stuttgart, and Volkswagen Aktiengesellschaft (Volkswagen AG), Wolfsburg, are approaching to grasp their common idea of formulating a Integrated Automotive Group on 1 Aug 2012. The efficient bodies and a executive play obliged during both companies have authorized a judgment for a finish formation of Porsche AG into a Volkswagen Group. According to a concept, Porsche SE will minister a holding business operations, including a 50.1 percent investment in Porsche’s handling business, to Volkswagen AG. The realisation of a transaction will make Volkswagen AG solitary owners of Porsche’s business operations.

“The accelerated doing of a common idea will make Porsche SE a financially clever holding association with appealing intensity for augmenting value added. We are formulating clearly defined, tolerable structures and a plain opinion for Porsche SE’s future,” pronounced Matthias Müller, member of a Porsche SE executive board. “In their handling business, Porsche and Volkswagen will now be means to precedence synergies during an progressing theatre and concur some-more easily. Porsche SE, as a largest Volkswagen shareholder, will also advantage severely from this.”

Porsche SE will accept a money volume of about 4.46 billion euro from a transaction, as good as one new typical Volkswagen AG share. This money volume includes a bottom squeeze cost concluded on in a simple agreement and ignored to today’s satisfactory value for Porsche SE’s 50.1 percent share in Porsche’s handling business as good as a satisfactory value of division payments from this investment due to Porsche SE from now until 2014. Economically, this means that Porsche SE will be in a same position today, as regards to a 50.1 percent share in Porsche’s handling business, as it would be if Volkswagen exercised a call option, as supposing for in a simple agreement of 2009, in Aug 2014. The money volume of about 4.46 billion euro additionally includes, also during today’s satisfactory value, half of a probable additional net synergies done probable by a accelerated origination of a Integrated Automotive Group totaling some 320 million euro, as good as a satisfactory value of a other Porsche SE resources that will be contributed to Volkswagen AG. The accelerated origination of a Integrated Automotive Group can be implemented during economically viable conditions on a basement of a German Transformation Tax Act and a German Transformation Tax Decree published during a finish of 2011, as good as contracting rulings from a efficient financial authorities.

Due to a contribution, a investment in Porsche’s handling business will no longer be accounted for during equity in a combined financial statements of Porsche SE, substantially as of Jul 2012, with a outcome that no serve increase from investments accounted for during equity will be attributable to Porsche SE from this investment. After a grant has been performed, Porsche SE will, however, continue to reason a share of 32.2 percent of Volkswagen AG’s collateral and will therefore attend indirectly in a outcome of Porsche’s handling business as good as benefiting from a fulfilment of a full synergy intensity of a Integrated Automotive Group in a future.

The grant transaction itself will outcome in a one-time certain outcome on gain presumably in a volume of about 7 billion euro in a combined financial statements of Porsche SE. This formula in sold from a grant of Porsche SE’s share in Porsche’s handling business as good as a put and call options relating to this share. Moreover, a outcome on gain takes into comment a outcome of a transaction on accounting for a share in Volkswagen AG during equity. As a outcome on gain is dynamic on a basement of valuations still to be updated as during a envisaged date of contribution, i.e. 1 Aug 2012, a volume might still be theme to changes. The existent put and call options, that will cancel with realisation of a transaction, will have no serve effects on a Porsche SE group’s net resources and formula of operations.

Porsche SE will primarily use a money of about 4.46 billion euro that it receives to repay bank liabilities of 2.0 billion euro in full. The vital apportionment of a liquidity remaining afterward is dictated to be used for vital equity investments, focusing along a automotive value chain.

About Porsche Cars North America

Porsche Cars North America, Inc. (PCNA), formed in Atlanta, Ga. is a disdainful U.S. importer of Porsche sports cars, a Cayenne SUV and Panamera sports sedan. Established in 1984, it is a wholly-owned auxiliary of Porsche AG, that is headquartered in Stuttgart, Germany, and employs approximately 220 people who yield parts, service, selling and training for 194 dealers. They, in turn, work to yield Porsche business with a best-in-class knowledge that is in gripping with a brand’s 63-year story and care in a enrichment of car performance, reserve and efficiency.

At a core of this success is Porsche’s unapproachable racing birthright that boasts some 30,000 motorsport wins to date.

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