Porsche SE Considers Strategic Investments In Automotive Assets
May 10 2012 - 8:16AM
Dow Jones News
Porsche Automobil Holding SE (PAH3.XE) wants to use proceeds
from the planned sale of its sportscar division to Volkswagen AG
(VOW.XE) for strategic investments in automotive assets and for
paying back its remaining liabilities to banks.
"The proceeds should mainly be used for further investments
focusing on the automotive value chain," Porsche said Thursday in
the invitation to its shareholder meeting published on the
corporate website.
Porsche said it will adjust its corporate statutes accordingly
at the meeting, which is scheduled on June 25.
A spokesman for Porsche said this was a precautionary move to
keep all strategic options open for the time after the integration
of Porsche's sportscar operation into Volkswagen has been
completed. There are no concrete plans for acquisitions, he
said.
Porsche already sold a 49.9% stake in its sportscar unit to
Volkswagen as part of a complex deal in 2009 to forge a combined
company after its attempt to take over its much-larger peer
backfired amid ballooning debt.
At the time, Porsche and Volkswagen mutually granted each other
options to transfer the remaining 50.1% stake to VW if the initial
plan for a merger including Porsche's holding firm doesn't work
out. This initial plan had to be abandoned last year due to legal
obstacles.
The sale of the remaining 50.1% stake in Porsche's sportscar
unit is expected to be worth roughly EUR4 billion, substantially
more than Porsche Holding's financial liabilities of EUR1.5 billion
at the end of the first quarter.
-By Christoph Rauwald, Dow Jones Newswires; +49 69 29 725 512;
christoph.rauwald@dowjones.com
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