Porsche SE Raises Volkswagen Stake and Dividend
19 March 2019 - 9:21PM
Dow Jones News
By Max Bernhard
Porsche Automobil Holding SE (PAH3.XE) on Tuesday raised its
year-end dividend by nearly a third on the back of higher profit
and said it bought additional shares in its major investment
Volkswagen AG (VOW.XE).
Porsche said it spent about 400 million euros ($453.5 million)
to bring its stake in the German auto maker to 53.1% from 52.2%.
Executive Board Chairman Hans Dieter Poetsch said the company
remains convinced that Volkswagen has "vast potential" to increase
value for shareholders, which he said isn't reflected in
Volkswagen's current valuation.
Group profit for the year increased by 6% to EUR3.5 billion,
leading Porsche to raise its dividend by 26% to EUR2.21 per
preference share.
Porsche said it is facing a class action-style lawsuit "in
connection with expanding the investment in Volkswagen AG," with 40
plaintiffs that are asking for about EUR5.4 billion in damages.
"To judge by the way the hearing has proceeded thus far, Porsche
SE sees its opinion that the lawsuits are without legal basis
confirmed," it said.
The holding company said it is also facing investor lawsuits
from Volkswagen's diesel-emissions scandal, with more than 200
proceedings and claims of about EUR1.1 billion.
Looking to the year ahead, Porsche said it expects 2019 group
profit of between EUR3.4 billion and EUR4.4 billion and net cash of
about EUR300 million to EUR800 million. The forecast is "subject to
the uncertainty that continues to surround possible special effects
in connection with the diesel issue," it said.
Write to Max Bernhard at max.bernhard@dowjones.com;
@mxbernhard
(END) Dow Jones Newswires
March 19, 2019 06:06 ET (10:06 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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