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Thu 14 Apr 2011 06:10 PM

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Porsche nets over $7bn from rights issue

Luxury German carmaker is 10% owned by Qatar and is the focus of a merger with rival Volkswagen

Porsche nets over $7bn from rights issue
Porsche, which is ten percent owned by Qatar, raked in about 4.9 billion euros ($7.1bn) from a rights issue it will use to pay down debt, ahead of a planned merger with cash-rich ally Volkswagen

German luxury carmaker Porsche, which is ten percent owned by Qatar, raked in about 4.9 billion euros ($7.1bn) from a rights issue it will use to pay down debt, ahead of a planned merger with cash-rich ally Volkswagen.

"The successful capital increase and the near complete deleveraging of Porsche SE is a further important step on the way to an integrated automobile group," Porsche CEO Martin Winterkorn said in a statement on Thursday.

About 99.7 percent of the subscription rights allocated to preferred shareholders were exercised, according to the company.

Last year, the Stuttgart-based manufacturer shipped 6,842 vehicles to the MENA region, a 20 percent increase on the 2009.

"We are back on the fast track," said Bernhard Maier, executive vice president of sales and marketing at Porsche Middle East and Africa.

Across the MENA region, the Porsche Cayenne was the most popular model, accounting for over half of sales in 2010 and more than 24,000 sales since it was launched in the region in 2003.

The biggest increase in sales was reported in Qatar where the carmaker’s Doha distributors reported a 70 percent surge in sales.

[With wires]

 

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