With the proceeds from a 5 billion-euro stock sale, Porsche Automobil Holding SE is able to reduce its debt to about 1.5 billion euros ($2.1 billion). Chief Financial Officer Hans Dieter Poetsch prepared written remarks for delivery at Porsche’s annual press conference in Stuttgart.
He revealed that due to tax repayments, net debt at Porsche's holding company climbed to 6.34 billion euros as of Dec. 31 compared to 6.05 billion euros on July 31.
Poetsch also serves as CFO at Volkswagen AG, which is working to take over Porsche SE. In a statement, Matthias Mueller, the unit's CEO, said that orders at the Porsche AG car-making operations are "high" at the beginning of 2011 as demand for models such as the Cayenne SUV and Panamera sedan is "undiminished.”
It’s likely that full-year revenue at Porsche will surpass the figures posted for last year, says Autonews. Porsche SE and VW Group reached a deal to combine in August 2009 after Porsche incurred over 10 billion euros of debt in a failed attempt to gain control of VW. Presently, Volkswagen owns 49.9% of the Porsche AG carmaking operation.
Proceeds from the share sale, which Porsche seeks to complete by May 30, will contribute in paying back a 2.5 billion-euro bank loan that expires at the end of June.
The merger was set to be completed in the second half of 2011 but because of German legal obstacles, there is now doubt that it will take place. On February 24, Porsche said that an investigation into share-price manipulation allegations may delay the deal's completion into 2012.