Porsche is in advanced talks with another investor as the Porsche-VW merger talks have recently stalled. The Gulf state of Qatar is interested in buying a stake in the German sports car manufacturer, which would ease the company’s financial troubles and possibly turn the merger talks around.
Porsche CEO Wendelin Wiedeking is talking to the Qatar Investment Authority about the state possibly buying a stake in his company, said people familiar with the negotiations. The sources said that a deal could be announced within weeks.
It is unclear how much of a stake the Gulf state would take in the company, but it could be up to 25 percent. At Porsche’s current market value of €8.2 billion ($11.4 billion), a 25-percent stake would be somewhere north of €2 billion ($2.8 billion).
An outside investment that large may allow Porsche to take control of VW, as it originally intended, instead of merging with the German giant as it agreed to do last month. Porsche is currently VW’s majority shareholder, but ran out of money to buy the rest of the company and was unable to refinance its debt to complete the transaction.
VW asked Porsche to sort out its financial problems before any potential merger between the two companies, and said yesterday that it supports Qatar’s investment in Porsche. Porsche is currently seeking €1.75 billion ($2.4 billion) in loans from the German government to secure the final amount of refinancing the company needs. The German government, however, delayed a decision on the loan.
Source: Financial Times