Audi voted for the transfer of remaining 0.36% shares to Volkswagen AG at 131st AGM

KUALA LUMPUR: Volkswagen Group has held an interest in Audi since 1964 when it took over the brand from Daimler-Benz. But now the world’s largest automotive Group that owns Volkswagen, Porsche, Bentley, Skoda, Bugatti, SEAT, Lamborghini, Scania, Ducati, MAN brands, takes over the last fragment of the company that minority shareholders held till now. 

The Group established a 50% controlling stake in the brand half a century ago, which has now grown to 99.64%. Back in February, it submitted a share transfer request for squeezing out the remaining 0.36% to complete its ownership in the Audi AG, and in June, it specified the details of the transfer request. 

In Audi’s 131st annual general meeting that happened recently, Audi Board of Management voted for squeeze-out under stock corporation law, which will result in the transfer of all the remaining shares to Volkswagen AG. The board says that the planned structure intends to strengthen Audi’s role within the VW Group and to strengthen the future competitiveness of the Group.

“The Volkswagen Group is now consolidating all its strength. We are positioning ourselves competitively throughout the Volkswagen Group and lifting Group synergies and economies of scale to a new level,” says Markus Duesmann, Chairman of the Board of Management of AUDI AG.

As compensation for the transfer of the shares, Volkswagen Group set a handsome consideration of €1,551.53 (RM7,702.18) per Audi share for minority shareholders. Before the declaration of the squeeze-out request, the average price of one Audi share was €813.15 (RM4,036.23), which means that the fixed cash compensation is almost 90 percent above that average price. 

With shared production plants or jointly developing and using platforms and modules for conventional and battery-powered vehicles, Volkswagen Group and AUDI AG have been intensifying their association for many years now. Also, the foundations for competition-differentiating synergies have recently been laid with joint software development in the Car.Software-Organization, that will be headed by Duesmann. 

With optimized positioning and effective structures, the VW Group intends to meet the transformational challenges even more effectively.

Also read: Audi A7 Sportback to get LWB version for the Chinese market