Volkswagen Group to buy a 100% stake in Audi

KUALA LUMPUR: For decades, Volkswagen and Audi have jointly developed numerous vehicles, engines, and other related automotive technologies. Still, not everyone knows that Volkswagen Group does not entirely own the luxury brand Audi until now. Being the world’s largest automaker, VW Group holds 99.64 percent of Audi and plans to buy the remaining 0.36 percent for full control, reported by Automotive News.

According to the current exchange rate, the market price of one Audi AG share is around $1,180, and as per the report, VW will buy this at 1,551.53 euros. Thus for buying the minority shares, the auto giant is ready to pay a 48 percent premium. 

 “Volkswagen AG announced and specified that it has set the cash settlement to be paid to the minority shareholders in return for the transfer of their shares at 1,551.53 euros per Audi AG share,” the firm stated.

VW Group will buy the outstanding 152,749 Audi AG shares at a 48% premium price. Thus, the total buyout price is mentioned as 237 million euros (more than RM 1 billion) for the German automaker. The transfer is expected to happen at Audi’s upcoming annual general meeting, which was originally slated for May 14, 2020, but will now be held in July or August.

After the share transfer, Audi will remain the same stock corporation, compatible with the stock market.

“As Audi’s employee representatives, we fought for and achieved this goal,” said Peter Mosch, Chairman of Audi’s General Works Council. “The brand will, therefore, continue to be independent within the Group.”

In addition to owning Audi, the Volkswagen Group also owns Volkswagen, Bugatti, Bentley, Lamborghini, Porsche, Skoda, SEAT, MAN, Scania, Ducati, and Volkswagen Commercial Vehicles. It took over the title of the world’s largest automaker (in sales) from Toyota in 2016 and held the position in 2017, 2018, and 2019, by selling 10.9 million vehicles worldwide.

Also read: Volkswagen released a new price list after the sales tax exemption