Volkswagen weighs potential listing of Porsche AG, in push towards electric vehicles

According to a source familiar with the matter at hand, Volkswagen is weighing options which includes listing of its luxury car division Porsche AG which will provide it sufficient liquidity towards electrification of its vehicles.

“Those considerations exist,” said the source said while cautioning that they are still not being actively discussed in committees; any potential listing will be after this year.

While the news was leaked out by Manager Magazin earlier, the report stated Volkswagen could list as much as 25% of Porsche AG – a stake which could be valued at $24-$30 billion (20 billion to 25 billion euros). The news had boosted Volkswagen shares by 5.7%.

Volkswagen declined to comment.

Porsche Automobil Holding SE, which holds 31.4% of Volkswagen’s share along with 53.1% of the group’s voting rights, declined comment.

The news comes in the wake of a similar announcement by Daimler, which earlier this month had stated, it aims to spin off its trucks division, marking the latest German company to break up as it tries to find ways to lift valuations.

Volkswagen is facing serious competition in developing electric and self-driving cars.

Fiat Chrysler’s merger with PSA, which will create the world’s fourth-biggest automaker only adds to that pressure.

According to some analysts, Porsche AG could be worth as much as 100 billion euros, more than the current market capitalisation of its parent.

In an interview in 2018, Porsche AG’s CFO Lutz Meschke had said, it could be worth up to 70 billion euros as a separately listed company.

($1 = 0.8282 euros)

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