Volkswagen AG(VOW.DE,VLKAF.PK,VKW.L) and Porsche Automobil Holding SE (PAH3.DE,POAHF.PK) Wednesday announced an agreement, under which Porsche SE will sell its automotive business to Volkswagen, thereby creating a new integrated automotive group. Consolidation of Porsche AG is expected to take effect from August 1.
Volkswagen already holds 49.9 percent of Porsche AG indirectly, and on completion of transaction, will hold all of Porsche AG's shares via an intermediate holding company.
Porsche SE will receive a cash consideration of around 4.46 billion euros and one ordinary share of Volkswagen AG. The cash consideration is based on the Porsche's equity value of 3.88 billion euros. Volkswagen Group will also consider 2.5 billion euros in Porsche AG's negative net liquidity.
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by RTT Staff Writer
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