Porsche SE may sell a stake for as much as 2.5 billion euros ($3.45 billion) to Qatar as the German maker of sports cars seeks to cut debt and stay independent of Volkswagen AG, two people familiar with the situation said.
Stuttgart-based Porsche may conclude an accord with Qatar by the end of June, said the two people, who spoke on condition of anonymity because the discussions are private. Negotiations about the sale, held exclusively with the Persian Gulf state, are proceeding "in a good atmosphere," said Porsche spokesman Albrecht Bamler. He declined to comment on price.
Qatar wants to buy at least 25 percent of Porsche, the people said. A transaction would help Porsche alleviate its 9 billion euros in debt amassed with the purchase of a controlling stake in Volkswagen. Qatar would gain a say in company strategy, marking the first time in Porsche's 78-year history that the Porsche and Piech families have ceded some control.
A spokesman for the Qatari investment authority declined to comment.
Porsche's net debt tripled after the company increased its stake in Volkswagen to 50.8 percent at the beginning of this year from a 42.6 percent holding in October. Porsche holds options for about 20 percent of Volkswagen stock following transactions last year to build up the stake in an effort to reach a 75 percent ownership target.
Gulf Investments
Qatar would joint other investors from the Gulf region to take over stakes in German makers of luxury cars. Abu Dhabi's Aabar Investments PJSC bought 9.1 percent of Daimler AG for 1.95 billion euros in March to become the largest shareholder in the maker of Mercedes-Benz cars. Daimler's second-largest investor is the Kuwait Investment authority, with a 6.9 percent stake.
Porsche has declined 11 percent in Frankfurt trading so far this year, valuing the company at 8.22 billion euros. Porsche said on May 6 that it would begin talks with VW on creating an integrated European carmaker that would put Porsche alongside Volkswagen brands including Audi, Skoda and Bentley.
The discussions were disrupted after Volkswagen Supervisory Board Chairman Ferdinand Piech challenged Porsche's finances and Bernd Osterloh, VW's works council chief, asked to quit the negotiations.
The manufacturer of the 911 sports car is also in talks with banks about raising an additional 1.75 billion euros in loans after securing a 750 million-euro credit line with a bank, Porsche said last month. The talks on additional borrowings include government-controlled development bank KfW Group.
