Source: VW is said to weigh listing of Porsche sports-car division
"Volkswagen AG is considering a separate listing of its Porsche sports-car unit in a deal that could boost its valuation and bring in a significant amount of cash, according to people familiar with the matter.
The world’s second-largest carmaker is speaking with advisers to study the merits of a potential initial public offering or spinoff of Porsche, the people said, asking not to be identified discussing confidential information. VW could use any proceeds from a listing for acquisitions or technology investments, according to the people.
Chief Executive Officer Herbert Diess sounded the alarm in an interview with Bloomberg News last month about how Tesla Inc. and other electric-vehicle companies are cashing in on market optimism about their growth prospects. Investors have taken a dimmer view of VW and other incumbents, who will need to spend tens of billions to develop EVs while restructuring operations that revolve around combustion engines.
VW’s preferred shares rose as much as 6% in Frankfurt trading. At about $757 billion, Tesla’s market value is roughly seven times higher than VW’s 90 billion euros ($109 billion).
“A Volkswagen IPO of its Porsche brand would be a bold solution to generating much-needed shareholder value,” Michael Dean, a Bloomberg Intelligence analyst, said in a note. Porsche’s plan to be almost all-electric by 2030, with the exception of the 911 model, could “attract Tesla-like multiples while generating a Ferrari-like Ebitda margin.” "
Submitted February 19, 2021 at 05:19AM by Responsible-Plan https://ift.tt/2OTm4zy
