STUTTGART: Porsche AG said it will generate about €1 billion (RM4.74bil) selling its stake in the venture that owns the Bugatti supercar brand as the German manufacturer tries to become leaner.
The proceeds from the transaction triggered the sportscar maker, majority-owned by Volkswagen AG, to raise its forecast for the full-year automotive net cash flow margin.
It now sees a gain of as much as 7.5% this year, up from a previous forecast of as much as 5%, it said Wednesday.
The now-completed deal, with €250 million (RM1.184bil) going to fund pension obligations, is part of a broader push by Volkswagen's Porsche and Piech family owners to right-size the 911-maker's portfolio as it grapples with lackluster interest in luxury electric vehicles and waning sales in China.
The company hadn't disclosed the price when announcing the sale to a consortium led by HOF Capital in April.
Porsche rose as much as 2.5% in early trading in Frankfurt, valuing the manufacturer at around €41 billion (RM194.3bil).
Since 2021, Bugatti operated as a joint venture where Porsche held a 45% stake, and Croatia's Rimac Group held 55%.
Under the transaction, Porsche fully divested its equity stake in Bugatti Rimac and its 20.6% holding in Rimac Group.
Long seen as the epitome of engineering extravagance, Bugatti was once Volkswagen's smallest brand, with annual sales of about 80 cars.
Europe's biggest automaker parted ways with the boutique manufacturer in 2021 largely due to insufficient synergies with its high-volume business.
VW, also under pressure to cut costs, is currently considering offloading assets including motorcycle manufacturer Ducati.
Sweeping restructuring plans to lower costs and streamline VW's sprawling business are opening the door to further sales and transactions, according to Bloomberg
Intelligence analyst Michael Dean and Giacomo Reghelin.
Listing supercar maker Lamborghini, a move long speculated about, could value the Italian company at €25 billion (RM118.46bil), BI said, while reducing its stake in truckmaker Traton SE stake to 75% could raise about €2.4 billion (RM11.37bil).
