Volkswagen confirm F1 for Audi and Porsche but no word how

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Volkswagen’s premium brands Audi and Porsche have decided to join Formula 1, Volkswagen Chief Executive Herbert Diess confirmed on Monday.

There has been speculation for several months that the two brands were in negotiation over partnerships to enter the highest class of international motor racing.

Diess, speaking on YouTube, said that Porsche’s preparations were a little more concrete.

The German carmaker, which has not previously been involved with Formula 1 but has worked with Red Bull in the world rally championship, did not announce how it planned on entering the sport. read more

Audi is ready to offer around 500 million euros ($556.30 million) for British luxury sports carmaker McLaren as a means to enter, a source told Reuters in March, while Porsche intends to establish a long-term partnership with racing team Red Bull starting in several years’ time.

The decision comes as Volkswagen prepares for a possible listing of Porsche AG planned for the fourth quarter of this year, though sources have said the entry into Formula 1racing would only be likely to happen in a few years’ time.

Top Volkswagen shareholder Porsche supports plans to list luxury sportscar maker Porsche AG but the conflict in Ukraine could affect the timing of the proposed IPO, the holding company said on Tuesday.

Volkswagen aims to conduct the Porsche initial public offering (IPO) in the fourth quarter of 2022, though that may change if the conflict in Ukraine drags on, Porsche SE’s finance chief said.

“We cannot rule out, if the conflict lasts a longer time, that this could have potential implications on the listing,” Johannes Lattwein told a news conference, without elaborating on how it would affect plans.

No final decision has been made on the proposed IPO

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A framework agreement for the listing proposed by Volkswagen in February includes selling 25% plus 1 ordinary share in the carmaker to Porsche SE as well as listing up to 25% of Porsche AG’s preferred stock.

Some 49% of the IPO proceeds would be paid out to Volkswagen’s shareholders as a special dividend. read more

“Porsche SE thereby supports the plans of Volkswagen AG to expand its financial flexibility and accelerate the technological transformation of the group,” Porsche SE said in a statement reporting its annual results.

“Due to the leading positioning of Porsche AG in the sport and luxury segment, this attractive investment would diversify our portfolio and our dividend inflows,” Lattwein said.

Porsche Automobil Holding SE, which is controlled by the Porsche and Piech families and holds a 31.4% equity stake in Volkswagen, has no plans to reduce its stake in the German carmaker, Poetsch said.

The IPO would also not impact the composition of the Volkswagen supervisory board.

Porsche SE reported a 2021 group result after tax of 4.6 billion euros ($5.06 billion). It forecast group results after tax in 2022 at between 4.1 billion and 6.1 billion euros, not including the impact of the possible Porsche IPO. (Reporting By Victoria Waldersee & Jan Schwartz)