Porsche to start $7 billion share sale to reduce debt

Porsche

As reported earlier this month, Porsche Automobil Holding SE was looking for a new strategy to attract investors as a stand-alone company since a merger with Volkswagen AG is starting too become unlikely – well, they’ve figured it out.

Porsche SE said that it will start a 5 billion euro ($7 billion) share sale on March 30 to reduce debt.

Porsche plans to use the proceeds to cut debt to about 1.5 billion euros. The company’s supervisory and executive boards signed off on the plan to sell shares at 38 euros apiece to current owners, Porsche said Sunday.

Again, while Porsche SE may end up not merging with Volkswagen Group, V-dub can still take full control of Porsche AG, the company’s car making arm.

Photo Copyright Β© 2010 Omar Rana – egmCarTech.

– By: Omar Rana

Source: Automotive News