(Volkswagen AG) Shares of Volkswagen rose more than 9% on Tuesday after the company said it was in advanced talks for a potential IPO of the Porsche brand.
The automaker said that Volkswagen AG and Porsche Automobil Holding SE have discussed a Framework Agreement, forming a basis for a potential IPO of the Porsche brand.
Porsche SE, which dubs as the investment vehicle of Porsche-Piech families, holds around 53.3% of stake in VW. The company said it could buy shares in Porsche AG to facilitate the IPO.
The confirmation comes after speculations that Porsche SE would relinquish its holding in Volkswagen to finance the acquisition, a move that is expected to lower its control on VW.
Analysts have described a partial IPO for the Porsche brand a “win-win,” and occurs at a time VW has been pushing into the electric vehicle market, having committed around 52 billion euros for the endeavor.
The final decision now awaits VW’s management and supervisory boards’ approval and could result in one of the largest IPOs in Germany for several years.
VOW3 is up +9.62%, PAH3 is up 11.08%.
