A Qatar-based investment firm has sold back its ten percent share in Porsche SE to the Porsche and Piech families – the families that originally owned the company in its early years. Qatar Holding, the state-backed wealth fund, purchased the Porsche shares in 2009 as part of a desperate financing deal made by the automaker.
The families now own the entirety of Porsche SE, the holding company that manages ownership of the Porsche and Volkswagen brands. The company owns 51 percent of common stock in Volkswagen, with Qatar Holding owning 17 percent of the famous German automaker.
Porsche is one of the few German car companies to have avoided large-scale foreign investment, with the Porsche and Piech families seeking limited outside investment since the company was founded. Facing ailing finances, the company offered Qatar a ten percent share in the company in 2009 in order to raise important funds.
Qatar’s investment was integral to Porsche’s continued success as a leading sports car manufacturer after the company plunged over 10 billion euro into debt after a failed acquisition of Volkswagen. The investment group allowed Porsche to return to financial health and negotiate its current merger with Volkswagen.
Porsche remains the largest shareholder in Volkswagen, giving the families a great degree of control over the European automotive industry. Porsche shares gained a 0.36 percent increase in value after the news was announced. The price paid by the families for the ten percent share of Porsche SE was not made public.
The change in share ownership at Porsche SE has simplified operations for the new Integrated Automotive Group – a group of European automotive brands made up of the Porsche and Volkswagen line-ups after the companies’ merger. The sale ends the four-year investment saga that’s made Porsche a major financial news headline.
