VW Group To Fully Own Audi After $267 Million Buyout
21. June 2020 - Motor1
The official transfer will happen in Audi's next annual general meeting.
Since 1964, Volkswagen has already owned a part of Audi. After acquiring the German marque from then Daimler-Benz, the VW Group started with 50 percent holding in the company. That's a major controlling share, which has already ballooned to 99.64 percent of ownership this year.
However, Volkswagen will be buying out the remaining 0.36 percent minority shares in Audi, according to a report by Automotive News. This puts the VW Group in full control of the luxury automaker, but that will, of course, come with a price.
"Volkswagen AG announced and specified that it has set the cash settlement to be paid to the minority shareholders in return for the transfer of their shares at 1,551.53 euros per Audi AG share," VW said in a statement with Automotive News.
According to the report, a staggering 48 percent premium will be paid by the VW Group to the minority shareholders. The current share price in Audi AG is at 1,050 euros or around $1,180 with the current exchange rates. The VW Group will buy this at 1,551.53 euros (~$1,745).
With 152,749 outstanding Audi AG shares, the whole buyout will cost 237 million euros ($267 million) for the German automaker, which will result to VW's full control of Audi. The official transfer is expected to happen in July or August at Audi's annual general meeting.
There have been a lot of movements within the VW Group. One of the most recent reports involved Porsche CEO Oliver Blume allegedly moving over to lead the Volkswagen brand, resulting to Herbert Diess stepping down as VW's head but will remain chairman of the VW Group.
The VW Group hasn't confirmed that corporate movement at this time of writing.