Qatar sells Porsche stake

0
2310
Spread the love
Porsche Cayenne
Qatar Holding, the investment arm of the Gulf state’s sovereign wealth fund, has decided to sell its 10 percent shareholding in Porsche. Photo courtesy: Porsche

Qatar Holding, the investment arm of the Gulf state’s sovereign wealth fund, has decided to sell its 10 percent shareholding in Porsche Automobil Holding SE (PSE). However, the sovereign fund will retain its 17 percent stake in Volkswagen, Europe’s biggest auto maker.

After PSE and the German state of Lower Saxony, the tiny state of Qatar remains the third-biggest shareholder in VW.

The luxury Porsche brand is owned by Volkswagen. After the sale, the Porsche and Piech families would once again own all of Porsche’s common stock. Qatar Holding has decided to sell its share in the company after Volkswagen’s (VW) takeover of Porsche last year.

Although value of the deal has not been disclosed so far, Qatar’s share in the car-marker is estimated to be worth 930 million euros, if all common shares are valued at the same price as the preferred stock. Back in 2009, Qatar purchased the stake in Porsche as part of a €7 billion (Dh36.52bn) deal to help the debt-ridden luxury sports car maker. Under the arrangement, Porsche was also to establish research and development and testing facilities in Doha.

According to Wolfgang Porsche, Porsche supervisory board chairman, “this is an expression of our confidence in the prosperous future of Porsche SE as the largest shareholder of Volkswagen AG. We are looking forward to continue working with the Qatar Holding as strategic shareholders of the integrated automotive group.”

Qatar Holding has been generally in the news for eyeing lucrative investment targets across the globe. Buoyed by high oil prices, Qatar has chased investments in Greece, Spain, Germany and France. As Europe makes a slow recovery from the global financial crisis and debt crisis, Qatar has managed to enjoy bargain deals in the market.

During the peak of banking turmoil, the Gulf state bailed out Barclays and emerged as its biggest shareholder. Some other high-profile assets grabbed by Qatar include French soccer club Paris Saint-Germain, German sports-car maker Porsche and Swiss lender Credit Suisse.

Facebook Comments