From Business

VW to Pay $5.6 Billion for Rest of Porsche

Volkswagen AG (VOW) agreed to buy the 50.1 percent stake in Porsche SE’s automotive business that it doesn’t already own for 4.46 billion euros ($5.6 billion), ending a seven-year takeover saga that divided two of the most powerful families in Germany.

VW was able to proceed with the transaction two years earlier than planned after reaching an agreement with German tax authorities, it said late yesterday. The cash deal is based on an equity value of 3.88 billion euros and also includes what the Porsche holding company would have received in dividend payments and half of the forecast synergies from the combination. Read more

Porsche SE and Volkswagen AG create Integrated Automotive Group

Boards pass concept for accelerated creation of the Integrated Automotive Group between Porsche and Volkswagen / One-time positive effect on earnings / Porsche SE as financially strong holding company continues to be significantly involved in growth of Volkswagen AG

Stuttgart, 4 July 2012. Porsche Automobil Holding SE (Porsche SE), Stuttgart, and Volkswagen Aktiengesellschaft (Volkswagen AG), Wolfsburg, are expected to achieve their shared goal of creating the Integrated Automotive Group on 1 August 2012. The competent bodies and the executive boards responsible at both companies have approved a concept for the complete integration of Porsche AG into the Volkswagen Group. According to the concept, Porsche SE will contribute its holding business operations, including its 50.1 percent investment in Porsche’s operating business, to Volkswagen AG. The consummation of the transaction will make Volkswagen AG sole owner of Porsche’s business operations. Read more

Style Porsche is awarded the honorary title of “red dot: design team of the year 2012”

Highest distinction for chief designer Michael Mauer and the Style Porsche design team

Essen/Stuttgart. In appreciation of its uninterrupted great design performance, the Style Porsche design team has been awarded as the “red dot: design team of the year 2012.” Chief designer Michael Mauer and his team of 80 have been dedicated to the task of sustaining and advancing the Porsche identity across all model ranges since 2004. With the new Porsche 911 Carrera, the design team has triumphed in carrying forward the success story of the 911, which has spanned a period of nearly 50 years up to now. For this, the design icon was already awarded the “red dot: best of the best 2012” this year. Read more

Prof. Dr. Winterkorn: “Volkswagen and Porsche are excellently positioned”

Annual general meeting of Porsche SE in Stuttgart / significantly larger dividend for holders of ordinary and preference shares proposed

Stuttgart, 25 June 2012. The CEO of Porsche Automobil Holding SE, Stuttgart, Prof. Dr. Martin Winterkorn, underscored at today’s annual general meeting the extraordinary positive cooperation of the company’s two investments and their good future prospects. “Volkswagen and Porsche are already working together extremely well. Both companies are excellently positioned for a successful future together,” said Winterkorn in front of the shareholders in Stuttgart. According to the CEO, the planned creation of an integrated automotive group offers Volkswagen and Porsche substantial advantages. This would allow an even tighter integration of the operating business. On this basis, Volkswagen and Porsche would be able to considerably strengthen their competitive position once more. “We want to complete the integrated automotive group at economically viable conditions and as quickly as possible”, Winterkorn said. Read more

Porsche SE reports substantial profit in Q1 2012

Good development of the Porsche and Volkswagen investments

Stuttgart, 7 May 2012. In the first quarter of the current fiscal year 2012, Porsche Automobil Holding SE (Porsche SE), Stuttgart, reported a profit after tax of 327 million euro at group level. The profit was primarily attributable to the good development of Porsche SE’s two investments in the Volkswagen group and the Porsche Zwischenholding GmbH group. The profit from investments accounted for at equity amounted to 1.169 billion euro for the period from 1 January to 31 March 2012. This was counterbalanced in particular by a non-cash special effect recognized as an expense from the adjustment of the valuation of the put and call options for the shares in Porsche Zwischenholding GmbH remaining with Porsche SE totaling minus 810 million euro. Read more