Volkswagen clearly undervalued but batteries could boost business, second-largest shareholder says

Volkswagen clearly undervalued but batteries could boost business, second-largest shareholder says

The logo of Volkswagen is displayed at the Mexico’s factory during a new vote to ask workers if they approve of a recently negotiated deal with the management, in Puebla, Mexico August 31, 2022. REUTERS/Imelda Medina.

Register now for FREE unlimited access to Reuters.com

BERLIN, Sept 2 (Reuters) – Lower Saxony, Volkswagen’s (VOWG_p.DE) second-largest shareholder, views the carmaker as undervalued but believes its growing battery business could boost its valuation, the state’s prime minister said on Friday.

As Volkswagen and its largest shareholder Porsche SE prepares to list sportscar maker Porsche in part to raise funds, Stephan Weil said he believed the group had potential far above its valuation, adding it was not time to consider capital increases.

“I am sure Volkswagen has unbelievable potential … there is a lot to suggest that its activities around batteries will increase the value of the group in a sustainable way,” Weil said on the sides of his election campaign.

Register now for FREE unlimited access to Reuters.com

Volkswagen’s market capitalisation reached over 100 billion euros ($99.89 billion) in March 2021 as the carmaker released ambitious electrification targets, but has fallen to 82.9 billion euros amid a wider European slump this year.

The northwestern German state, which draws hundreds of millions of euros in dividend payments and business tax from Volkswagen and houses its global headquarters, owns an 11.8%stake and controls 20% of the voting rights.

Conversations thus far about a potential listing of sportscar brand Porsche, which could be triggered as soon as next week, had gone smoothly so far, Weil said, adding the state remained committed to its stake in the Group.

Register now for FREE unlimited access to Reuters.com

Reporting by Andreas Rinke, Writing by Victoria Waldersee Editing by Paul Carrel

Our Standards: The Thomson Reuters Trust Principles.

.

Leave a Comment

Your email address will not be published.