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Porsche-Piech Family Buys Qatar’s 10% Stake in Porsche

The Porsche-Piech family bought Qatar Holding LLC’s 10 percent stake in Porsche Automobil Holding SE to regain full control of the majority owner of Volkswagen AG. (VOW)

“All of Porsche SE’s common stock is now again held by the Porsche and Piech families,” Wolfgang Porsche, supervisory board chairman, said in a statement today. “This is an expression of our confidence in the prosperous future of Porsche SE as the largest shareholder of Volkswagen AG.”

The family and Qatar are not disclosing the sale price, Albrecht Bamler, a Porsche spokesman said. Porsche’s common shares are not traded. The preferred stock was little changed as of 9:26 a.m. in Frakfurt trading, valuing the Stuttgart, Germany-based company at 18.6 billion euros ($24.8 billion).

The holding company’s only asset is 50.7 percent of VW’s common shares. Porsche sold the remainder of the automotive business to VW last year after lawsuits against Porsche scuttled an effort to fully merge the two companies.

Porsche is facing legal claims in Germany seeking a combined 5.4 billion euros linked to its aborted takeover of Volkswagen more than four years ago. Investors say Porsche failed to inform the markets about its takeover plan. Porsche has repeatedly denied the claims.

Fully Committed

“It’s clear that the family has an interest in holding 100 percent of the voting rights of Porsche SE,” Frank Biller, a Stuttgart, Germany-based analyst with Landesbank Baden-Wuerttemberg. “That has been the case in the past and looks to be the case now. Qatar, as a financial investor, likely got a higher price than they paid.”

Qatar said it remains fully committed to Volkswagen and plans to keep its 17 percent stake in Europe’s largest automaker.

“As a long-term strategic investor, we believe that Volkswagen represents a unique investment,” Ahmad Al-Sayed, Qatar Holdings chief executive officer, said in the statement. “We look forward to continue making a significant contribution to the future success of the combined group.”

To contact the reporter on this story: Chad Thomas in Berlin at cthomas16@bloomberg.net

To contact the editor responsible for this story: Chris Reiter at creiter2@bloomberg.net

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