Porsche can reduce debt to $2.1 billion with proceeds from stock sale

Article by Christian A., on March 18, 2011

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.

If you liked the article, share on:

Topics: porsche

Comments

Recommended

Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 2017
The 2018 Jaguar XEL with its stretched-out wheelbase and longer doors is the newest addition to the growing list of premium sedans in China---joining the ranks of Mercedes-Benz C-Class L,...
by - November 21, 2017
Honda this week announced that its all-new 2018 Clarity Plug-in Hybrid will arrive at US dealerships with a starting price of $33,400 beginning on the first of December. Because the...
by - November 21, 2017
Lamborghini had been expected to refresh its entry-level model – the Lamborghini Huracan – in late 2018 or early 2019. But here is some good news for fans of the...
by - November 20, 2017
The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 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