Porsche Automobil Holding SE, the company that has a majority control in Volkswagen (VW), will probably soon be investing more in energy than in luxury cars like the flagship model 911, according to Bloomberg. Porsche SE shareholders voted Monday in favor of changing the status of the company, as the completion of the car division sale to VW is approaching. The vote allows the holding company to invest in materials for the automotive industry, in real estate and energy transactions.
“The attention will focus on activities related to the automotive sector. Porsche SE is and will remain bound to the auto industry,” said Martin Winterkorn, CEO of Porsche SE and Volkswagen. Without new investment, Porsche SE will be limited to administration of 50.73% of VW common shares, after selling the Porsche car brand. The sale agreed earlier this month will end a saga triggered by the failed attempt of Porsche to take over VW. If VW will exercise options to acquire 50.1% stake in Porsche’s auto division that it doesn’t have yet, Porsche could get 2.5 billion euros, net of debt. The company will receive about 570 million euros in dividends from VW, according to Bloomberg data.
The sale of Porsche car division, which also makes the sport-utility vehicle Cayenne and four-door coupe Panamera, is part of an agreement reached in August 2009 to merge the two companies into an “Integrated Automotive Group”. The original plan of merger of VW and Porsche SE has been canceled due to legal problems.
Porsche SE has been for a long time in a close relationship with Volkswagen. The first VW Beetle was designed by Ferdinand Porsche who founded in 1931 the company “Dr. Ing. h.c. F. Porsche GmbH” in Stuttgart. Volkswagen Beetle was one of the most successful cars in the world. Porsche has also produced tanks for the German army during the Second World War.
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