Volkswagen gets US$8.8b by selling preferred Porsche shares

Volkswagen raked in US$8.8 billion via the sale of preferred shares in sports car brand Porsche, less than the maximum because a greenshoe option was only partially exercised, it said on Tuesday (Oct 11).

That puts the free-float of Porsche's preferred shares at 24.2 per cent, the carmaker said. Volkswagen would have received 9.4 billion euros in case of a fully drawn greenshoe option, it said last month.

Stabilisation manager Bank of America gave notice to Volkswagen to partially exercise the greenshoe option in the amount of 11,059,061 non-voting preferred shares of Porsche, Volkswagen said.

Total proceeds for Volkswagen, which include the sale of 25 per cent plus one ordinary share of Porsche AG to Porsche SE, therefore stand at 19.2 billion euros (S$26.8 billion).

Volkswagen listed Porsche on the Frankfurt stock exchange last month in what has been Germany's second-largest listing on record. Since the listing, Porsche shares have gained 5.8 per cent, giving it a market valuation of 79.5 billion euros, more than the US74.5 billion for parent Volkswagen. REUTERS

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