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Porsche SE Agrees to Back VW Dividend
Porsche Automobil Holding SE, which controls Volkswagen Group, has decided against blocking VW’s plan to pay a dividend for 2015 in spite of the impending financial burden of the carmaker’s diesel emission cheating scandal, Bild reports.
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Porsche Automobil Holding SE, which controls Volkswagen Group, has decided against blocking VW’s plan to pay a dividend for 2015 in spite of the impending financial burden of the carmaker’s diesel emission cheating scandal, Bild reports.
Porsche SE manages 52% of VW's voting shares on behalf of the Porsche and Piech families. Last week the holding company set a supervisory board meeting for June 20 to discuss blocking the payout as a means to preserve cash. That meeeting has now been canceled.
VW proposes to cut its dividends about 97% to €0.11 (12 cents) on common shares and €0.17 (19 cents) on preferred shares.
Reuters pointed out earlier this week that cancelling dividends for two consecutive years would force VW under German law to grand voting power to preferred shareholders. Doing so would dilute the clout of the Porsche and Piech families and jeopardize the power of the state of Lower Saxony, which currently holds a 24% stake.
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