Descendants of Porsche Automobil Holding SE (ETR:PAH3) (FRA:PAH3) founder Ferdinand Porsche have re-acquired a stake in the holding company firm the engineer and automobile entrepreneur founded in 1931.
The Qatar Holding Acquisition Of Porsche
The Qatar Holding acquisition of Porsche came after a failed bid by Porsche to take-over VW during the financial crisis. The acquisition’s failure left Porsche on the brink of financial ruin. In 2010, Porsche and two of its former top executives were sued for $1 billion by a group of US hedge fund manager over accusations that they lied about their intention to take over Volkswagen AG (ETR:VOW3) (ETR:VOW) (FRA:VOW).
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VW eventually turned the tables and took over Porsche Automobil Holding SE (ETR:PAH3) (FRA:PAH3) instead. Volkswagen agreed to buy the remaining 49% of the glamour car company, for nearly 4.5bn euro.
The reverse purchase halted years of animosity as the both parties kept a very low profile tiptoeing around pending lawsuits and the taxman in order to buy time to come to a deal .
Qatar Holding the investment arm of the Gulf state’s sovereign wealth fund, stated it retains 17pc stake to the business through in VW, but refused to disclose the sale price. Qatar’s sovereign wealth fund remains the third biggest shareholder in VW after Porsche and the German province of Lower Saxony. Qatar Holding’s investments cover more than 30 countries.
The recent transaction means the Porsche Automobil Holding SE (ETR:PAH3) (FRA:PAH3) and Piech families are now once again the main shareholders of Porsche Automobil Holding SE (ETR:PAH3) (FRA:PAH3). Porche Automobil Holding SE is the single biggest shareholder in VW with 50.7% of the company. The company is the largest single shareholder of Volkswagen AG (ETR:VOW3) (ETR:VOW) (FRA:VOW), which in turn manufactures the Porsche luxury cars.
Porsche Confirmed The Transaction Today
“This transaction results as a logical step after the creation of the Integrated Automotive Group between Volkswagen AG (ETR:VOW3) (ETR:VOW) (FRA:VOW) and Porsche AG as finalized in 2012,” said Qatar Holding in a statement to Reuters.
Carmaker Porsche Automobil Holding SE (ETR:PAH3) (FRA:PAH3) confirmed the transaction today but also declined to reveal the sales price for now.