Porsche Eyeing IPO as a “Super Premium” Spinoff from the Volkswagen Group

© Provided by Car and Driver   The German automaker would lead VW's supercar and luxury brands, Bentley, Bugatti, and Lamborghini, in a deal aimed straight at rival Ferrari.

By Clifford Atiyeh,Car and Driver

Tempted by billions of dollars and a chance to topple Ferrari, Porsche is considering a potential split from the Volkswagen Group into a separate, publicly traded company.

Porsche's chief financial officer, Lutz Meschke, told Automotive News and other outlets about the idea of Porsche leading a new company that would combine the Stuttgart automaker with Bentley, Bugatti, and Lamborghini. Meschke said the spinoff of the VW group's four “super premium” brands could be valued at up to $81 billion. At current market capitalization, Meschke's enormous estimate is a couple billion shy of the entire VW Group, which includes 11 brands including Ducati motorcycles and Scania and Man trucks. It's also more than triple that of Ferrari ($22 billion), which went public in October 2015, and nearly 18 times that of Aston Martin ($4.6 billion), which began trading on the London Stock Exchange on October 3.

Any split could benefit VW as much as Fiat Chrysler did when it launched Ferrari's initial public offering. In that deal, FCA sold 9 percent of its Ferrari holdings for $893 million and later transferred its remaining stake entirely to FCA shareholders. Before the IPO, Ferrari also transferred $2.8 billion to FCA and absorbed some of its former parent's debt. Ferrari has since doubled in value. FCA, despite a rocky 2016 and a decline this year from an all-time high in January, has a $25 billion market cap and has gained about 60 percent in the same time.

While Porsche's 196,562 sales through September make up less than 3 percent of the entire VW Group, it's easily the most lucrative and fastest-growing luxury brand in Wolfsburg, above Audi. Porsche's half-year profit margin topped 17.5 percent, compared to Audi's 8.9. That still compares unfavorably to Ferrari's 30 percent margin in 2017, which the Italian automaker predicts will surge to more than 38 percent in four years. If Porsche, together with its Italian, British, and French counterparts, can net even higher profits while allowing the VW Group—which likely would keep a partial stake—to realize savings, everyone could win.

That includes Porsche's own ego. The formerly independent company, once controlled by the Porsche and Piëch families, almost went bankrupt attempting to buy the entire VW Group in the late 2000s. By 2009, in a bitter twist of irony during the recession, VW bought a 49.9 percent stake in Porsche and purchased the rest in 2012. Any split is hypothetical at this point, but if a chief financial officer is juicing investors with this talk and hasn't been immediately fired, you can be sure the VW Group is in hot pursuit of a separate Porsche.

COMMENTS





Name

Accessories,1,Auto Insurance,1,Auto Show,13,Autos,407,Autos News,5,Barn Finds,1,Buying,1,Car Shows,1,Car Tech,1,Certified Pre-Owned Vehicles,1,Chicago Auto Show,1,Classic Cars,11,Consumer Electronics Show,1,Customs & Classics,1,Detroit Auto Show,1,Driving,1,Enthusiasts,27,Frankfurt Motor Show,1,Fuel Economy,1,Gearheads,1,Geneva Motor Show,1,Hot Rod Power Tour,1,Imports,1,Just For Fun,2,Los Angeles Auto Show,1,Maintenance,1,Motorcycles,17,Motorsports,1,Muscle Cars,1,Muscle Cars & Hot Rods,1,New Bikes,1,New Car Deals,1,New York Auto Show,1,News,47,Ownership,10,Paris Motor Show,1,Pebble Beach Concours d'Elegance,1,Recalls,1,Research,9,Reviews,1,SEMA Show,1,Shanghai Auto Show,1,Sports and Exotics,1,Sports Cars,1,Supercars,1,Tech,1,Tokyo Motor Show,1,Trucks,1,
ltr
item
Autos - U.S. Daily News: Porsche Eyeing IPO as a “Super Premium” Spinoff from the Volkswagen Group
Porsche Eyeing IPO as a “Super Premium” Spinoff from the Volkswagen Group
https://4.bp.blogspot.com/-28HXz1qmOxw/W8bEQAVpnEI/AAAAAAAAe9Y/Pxs_jdIJ5vkljrlolTbqg60sOchhu-GewCLcBGAs/s1600/2.jpg
https://4.bp.blogspot.com/-28HXz1qmOxw/W8bEQAVpnEI/AAAAAAAAe9Y/Pxs_jdIJ5vkljrlolTbqg60sOchhu-GewCLcBGAs/s72-c/2.jpg
Autos - U.S. Daily News
https://autos.dailynews.us.com/2018/10/porsche-eyeing-ipo-as-super-premium.html
https://autos.dailynews.us.com/
https://autos.dailynews.us.com/
https://autos.dailynews.us.com/2018/10/porsche-eyeing-ipo-as-super-premium.html
true
7329154058020919259
UTF-8
Loaded All Posts Not found any posts VIEW ALL Read More Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share. STEP 2: Click the link you shared to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy