Porsche nearing sale of 25% stake to Qatar

Porsche nearing sale of 25% stake to Qatar

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Despite a few years of strong sales, Porsche is suddenly in need of some serious capital. The German automaker has already received a 700 million euro bridge loan from Volkswagen in March to stay out of bankruptcy, and it is reportedly in talks with banks to secure a further 1.75 billion euros in financing.

Recent reports are stating that Porsche could also be looking for as much as 2.5 billion euros from the Arab emirate of Qatar to remain independent of the much larger VW. Two anonymous sources have said that the Middle Eastern country is looking for at least a 25% stake in the luxury sports car maker. The fresh funding would help Porsche alleviate some of its 9 billion euro debt, while also allowing the Stuttgart automaker some space to hold off future financial meltdowns.

Last week, reports came out that Qatar was exploring two options: it could either buy a stake in Porsche Automobil Holding SE (which owns both Porsche’s automaking unit and its 51% stake in VW), or purchase Porsche’s outstanding options on a 24% stake in Volkswagen. Apparently a deal between Porsche and Qatar could be confirmed in the next few weeks.

Porsche logo

Despite a few years of strong sales, Porsche is suddenly in need of some serious capital. The German automaker has already received a 700 million euro bridge loan from Volkswagen in March to stay out of bankruptcy, and it is reportedly in talks with banks to secure a further 1.75 billion euros in financing.

Recent reports are stating that Porsche could also be looking for as much as 2.5 billion euros from the Arab emirate of Qatar to remain independent of the much larger VW. Two anonymous sources have said that the Middle Eastern country is looking for at least a 25% stake in the luxury sports car maker. The fresh funding would help Porsche alleviate some of its 9 billion euro debt, while also allowing the Stuttgart automaker some space to hold off future financial meltdowns.

Last week, reports came out that Qatar was exploring two options: it could either buy a stake in Porsche Automobil Holding SE (which owns both Porsche’s automaking unit and its 51% stake in VW), or purchase Porsche’s outstanding options on a 24% stake in Volkswagen. Apparently a deal between Porsche and Qatar could be confirmed in the next few weeks.

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