Porsche SE investors have approved plans for a $6.5 billion stock sale to reduce the automaker’s debt as it prepares to become a part of Volkswagen AG. Shareholders at Porsche’s annual meeting voted in favor of raising funds, half of which will come from Porsche and Piech families, who control the common stock.
“All stakeholders will benefit as a result,” said VW CEO Martin Winterkorn, who also runs Porsche’s holding company. “You are playing a key role in two of the companies best placed to master the challenges of tomorrow’s automotive industry.”
In August 2009, Porsche agreed to become a part of Volkswagen AG after it failed to gain control of Volkswagen itself. Proceeds from the share sale will be used to help pay back 2.5 billion-euro bank loan, which expires at the end of June.
– By: Omar Rana
Source: Automotive News (Subscription Required)