Volkswagen will raise net proceeds of about $5.46 billion

Article by Christian Andrei, on August 25, 2010

Volkswagen AG announced last Thursday that it will increase net proceeds of about 4.1 billion euros ($5.46 billion) after issuing 64.9 million new preferred shares, each priced at 65 euros in its rights issue. VW said in its latest regulatory filing that shareholders could subscribe to six new non-voting shares for every 37 they currently own, even as the entire allotment had been placed on the market pending a so-called "clawback" option.

The new preferred stock issued via the capital increase will be fully entitled to the 1.66 euro dividend per share VW intends to distribute for 2009.

VW said that the company will increase the net proceeds of about 4.1 billion euros from the capital increase, according to the conditions in the subscription offer.

The carmaker added that all new preference shares were placed in the pre-placement. The allocation of preference shares to institutional investors is subject to a 27.2% clawback.

VW explained that the extent of clawback would depend on the number of existing shareholders that choose to exercise their subscription rights.

About 90% of VW's votes are controlled by Porsche Automobil Holding SE, the German state of Lower Saxony and Qatar's sovereign wealth fund. All have agreed to transfer their rights in advance to the banking consortium managing the sale.

Topics: vw

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Volkswagen Group’s dieselgate saga continues, but it appears the German company would be able to get out of trouble, but it would not be unscathed. This development comes as Volkswagen...
by - January 22, 2017
When a car has been in the market for nearly six years, it loses some of its luster and its customers tend to go for the all-new model with a...
by - January 22, 2017
Remember Zenos Cars, a British carmaker that specializes in designing and building lightweight and high-performance sports cars? If you are wondering how the company is faring with their E10 lightweight...
by - January 21, 2017
Mercedes-Benz has revealed that in 2017, its series 124 coupé will be celebrating its 30th anniversary. While this itself is a significant event, it will also mean that this model...
by - January 21, 2017
BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries