Porsche and Piech family will keep majority stake in VW after Porsche sports-car business is listed

The billionaire Porsche and Piech family plan to keep intact their majority shareholding in Volkswagen Group after the listing of VW's Porsche sports-car business.

The Porsche and Piech family has a 53 percent shareholding in VW Group through their family investment vehicle, Porsche Automobil Holding SE.

Porsche SE plans to buy a a blocking minority stake of 25 percent in a planned Porsche initial public offering valued at as much as 90 billion euros ($99.1 billion), according to Bloomberg Intelligence.

Porsche SE has a strong balance sheet and significant potential to raise outside capital, Chief Financial Officer Johannes Lattwein said Tuesday.

There are "currently no plans to reduce the stake in Volkswagen," Lattwein said on a call with reporters.

Teams working on the IPO, VW Group's biggest strategic move in years, were "extremely engaged," he said.

VW is continuing preparations to list the Porsche sports-car operations -- one of VW’s key profit contributors -- despite market volatility triggered by Russia’s war against Ukraine.

The move is part of VW’s efforts to finance the industry’s biggest shift to electric vehicles and boost its market valuation. Negative implications from the war in Ukraine for the IPO cannot be ruled out, Lattwein said.

Porsche SE has "an outstanding future ahead," CEO Hans Dieter Poetsch, who is also chairman of VW’s supervisory board, said on the call.

"Cash flow is expected to grow even more, and a future-oriented investment policy from the company can be expected as well as an attractive payout policy."

Under the terms of the deal, VW’s and Porsche’s supply agreements will continue to exist, Poetsch said.

The current terms of the IPO, still not finalized, would allow the Porsche and Piech family to regain direct influence over the sports-car brand in what used to be their family enterprise.

Under the plan, the family would gain a blocking minority stake of 25 percent plus one share.

Lattwein confirmed a special dividend proposed by VW would help the Porsche and Piech families finance their direct stake in the brand.