Volkswagen Group (XETRA:VOW) confirmed it is in “advanced discussions” with Porsche over a potential initial public offering (IPO) for the luxury car maker.
The German car manufacturer, which also owns brands such as Audi and Bentley, said it “negotiated a framework agreement which should form the basis for further steps in the preparation of a potential IPO.”
Volkswagen said any agreement is subject to approval by the management and supervisory board, and a final decision is yet to be made.
This is the first confirmation from either party that a potential listing is on the cards since rumours first surfaced last May.
According to several reports, any future listing could be the largest ever seen in Europe, with Reuters saying the German sports car manufacturer could be valued anywhere between US$51bn-US$102bn.
Reuters’ sources were told last year the Porsche and Piech families were considering taking a direct stake in Porsche, which would loosen their grip on Volkswagen. They currently have a 31.4% stake in Volkswagen.
Competitor Lotus is also eyeing a multi-billion-pound flotation to fund a new production plant in China to ramp up production.