Volkswagen AG, which is selling preferred shares to help finance the takeover of Porsche SE’s auto-making unit, set the offer price at 65 euros apiece.
The Wolfsburg, Germany-based company plans to raise about 4.1 billion euros ($5.4 billion) in net proceeds by selling 64.9 million non-voting preferred bearer shares from March 31 to April 13, the company said in a statement on DGAP newswire.
Volkswagen said March 23 it’s selling as many as 65 million preferred shares in a rights offer and has said its financing need is about 4 billion euros.
Volkswagen, Europe’s largest carmaker, agreed in August to merge with Stuttgart-based Porsche after the 911 sports-car manufacturer’s debt tripled to more than 10 billion euros following a failed bid to buy Volkswagen. Shareholders agreed at a Dec. 3 meeting to allow VW to sell as many as 135 million preferred shares in the next five years.
Volkswagen aims to overtake Toyota Motor Corp. as the world’s largest automaker. The Golf compact manufacturer bought a 19.9 percent stake in Suzuki Motor Corp. in January to expand in the Indian market and is building a factory in Chattanooga, Tennessee, to boost sales in the U.S.