Porsche AG shares lift Volkswagen shares up 3% in premarket trade Reuters

© Reuters FILE PHOTO: A Porsche logo is seen outside a Porsche car dealership during the outbreak of the coronavirus disease (Covid-19) in Brussels, Belgium, May 28, 2020. REUTERS/Yves Herman/File Photo

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BERLIN (Reuters) – Volkswagen’s ( ETR ) shares rose 3% in premarket trade on Monday, topping Germany’s blue-chip index, after the carmaker said on Sunday it would sell its luxury sports car for up to 75 billion euros. Car brand Porsche is targeting value, he said. Euro ($74.84 billion).

Shares in Porsche Holding SE, Volkswagen’s largest shareholder, rose 2.7 percent.

Volkswagen announced Sunday night that it will price its preferred shares at a price of 76.50 euros to 82.50 euros in a Porsche AG flotation, which could be Germany’s second-largest initial public offering in history.

A prospectus with more details on the list is expected to be published on Monday afternoon.

According to an agreement Volkswagen reached with Porsche SE in early September, 25% and one ordinary share in the sports car brand, which carry voting rights, will go to Porsche SE in the form of preferred shares and a 7.5% premium.

Porsche SE will finance the purchase of ordinary shares with up to 7.9 billion euros of debt capital, it said in a separate statement.

Total proceeds from the sale will be between 18.1 billion and 19.5 billion euros. Once the IPO goes ahead, Volkswagen will call an extraordinary shareholder meeting in December to propose paying 49 percent of total earnings to shareholders in 2023 as a special dividend.

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($1 = 1.0021 EUR)

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