Volkswagen AG resolves examination of a possible IPO of Dr. Ing. h.c. F. Porsche AG

As Volkswagen AG has announced via ad hoc disclosure dated 22 February 2022 it has conducted discussions with Porsche Automobil Holding SE on a possible IPO of Dr. Ing. h.c. F. Porsche AG and has negotiated a framework agreement. With the approval of the Supervisory Board of Volkswagen AG, the Management Board of Volkswagen AG today resolved to enter into the framework agreement and to examine on this basis the feasibility of a possible IPO of Dr. Ing. h.c. F. Porsche AG.

The actual feasibility of an IPO depends on several different parameters as well as general market conditions. No final decisions have yet been taken.

According to the framework agreement, it is envisaged to divide the share capital of Dr. Ing. h.c. F. Porsche AG into 50% preferred shares and 50% ordinary shares in case of an IPO and to place up to 25% of the preferred shares on the capital market in the course of the possible IPO. In this context, Porsche Automobil Holding SE would acquire 25% plus one share of the ordinary shares in Dr. Ing. h.c. F. Porsche AG from Volkswagen AG at the placement price of the preferred shares plus a premium of 7.5%. Volkswagen AG would continue to consolidate Dr. Ing. h.c. F. Porsche AG in its financial statements by means of full consolidation after the implementation of the IPO. Further, it is planned to continue the industrial cooperation between Volkswagen AG and Dr. Ing. h.c. F. Porsche AG after a possible IPO.

Volkswagen AG would use the proceeds from a possible IPO of Dr. Ing. h.c. F. Porsche AG to finance the industrial and technological transformation of the Volkswagen Group and its further growth. In addition, it was agreed that Volkswagen AG will propose to its shareholders to distribute a special dividend in the event of a successful IPO amounting to 49% of the total gross proceeds from the placement of the preferred shares and the sale of the ordinary shares. At the same time, it is planned that the employees of Volkswagen AG will participate in the success of the Group in the form of an employee participation programme (approx. EUR 2,000.- per employee).
 

Rolf Woller

Head of Group Treasury and Investor Relations