Autos & Transportation

Goldman Sachs, Freshfields working on possible Porsche IPO -Manager Magazin

2 minute read

A logo of Porsche is seen outside a Porsche car dealer, amid the coronavirus disease (COVID-19) outbreak in Brussels, Belgium May 28, 2020. REUTERS/Yves Herman

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  • VW constantly reviews ways to raise value - spokesperson
  • BofA estimates Porsche's enterprise value at 75 bln eur
  • Volkswagen shares up 3%

FRANKFURT, Oct 21 (Reuters) - Investment bank Goldman Sachs (GS.N) and law firm Freshfields are among advisors working on a possible listing of Volkswagen's (VOWG_p.DE) luxury unit Porsche AG, Manager Magazin reported on Thursday, without saying where it obtained the information.

The report prompted Volkswagen shares to rise 3% to the top of Frankfurt's blue-chip DAX index (.GDAXI), reflecting hopes that such a move could unlock tens of billions of euros in value hidden under the carmaker's complex conglomerate structure.

Bank of America, in a note last week, put Porsche's enterprise value at about 75 billion euros ($87 billion), accounting for more than half that of Volkswagen.

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People familiar with the matter had told Reuters in May that the Porsche and Piech families, who control Volkswagen's largest shareholder Porsche SE (PSHG_p.DE), are prepared to take a direct stake in Porsche AG should the luxury carmaker be separately listed. read more

While sources say that Europe's largest carmaker continues to work on scenarios for a separation or listing, no decision has been made on whether such a move - which could fetch tens of billions of euros - will happen.

"The Volkswagen Group is constantly reviewing options that serve the development and implementation of the corporate strategy and raise the company's value," a Volkswagen spokesperson said, declining to comment further.

Goldman and Freshfields both declined to comment.

Asked about the idea of a Porsche listing, talk of which has surfaced regularly in recent years, Volkswagen Chief Executive Herbert Diess in July said that while the group continued to review its set-up, a planned battery ramp-up was the priority. read more

($1 = 0.8591 euros)

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Reporting by Christoph Steitz and Jan Schwartz; Editing by Maria Sheahan and Emelia Sithole-Matarise

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