Share sale
November 10, 2009
Qatar Holding (QH) said it was selling the non-voting preference shares in VW "to enhance the liquidity" of the shares. The shares represent about half of its total stake in VW, which is Europe's biggest carmaker.
Despite this, QH said it remains committed to VW. "Volkswagen remains a key investment asset for QH and we have been pleased with our investment in Volkswagen so far," QH said in a statement, adding that it still plans to "remain a long-term strategic shareholder."
The statement said that the fund plans to increase its holdings in VW's common shares with voting rights to 17 percent.
VW to issue additional shares
The news of the sale sent VW preference shares down more than 13 percent on Tuesday.
QH is expected to make about 750 million euros from the sale, Reuters reported. Credit Suisse and Goldman Sachs will act as joint bookrunners in the sale of the preferred shares.
Volkswagen has around 105 million preferred shares in circulation, and is expected to issue up to 135 million more at a value of about 10 billion euros in the first half of 2010 to raise money for its planned merger with Porsche.
The Wolfsburg-based carmaker has so far declined to comment on QH's announcement.
dc/Reuters/dpa
Editor. Susan Houlton