Volkswagen to raise $5.7 billion for Porsche stake

• Source: Global Times
• [13:24 August 17 2009]
• Comments

Volkswagen AG (VW) said August 14 that it would raise 4 billion euros ($5.7 billion) in capital for a stake in Porsche AG.

The company agreed to buy a 42 percent stake last Thursday in the sports car unit of debt-ridden Porsche SE, and it will pay up to 3.3 billion euros this year for the initial stake in its subsidiary, Porsche AG.

Last Friday Porsche said it would sell a 10 percent stake of its shares to Qatar Holding LLC in a deal that would exceed $10 million.

If the combination with Volkswagen does not take place, Qatar Holding is entitled to resell its stake in Porsche SE to the families, it added.

A new name for the company created through the merger of Porsche and Volkswagen is yet to be decided, Volkswagen said.

The combined company will have 10 brands, adding the Porsche brand to a stable that already includes Audi, Bentley, Bugatti, Skoda, Seat and Lamborghini.

Agencies and Shi Jierui contributed to this story