VW to Increase Capital to Buy Porsche

German manufacturer Volkswagen announced yesterday its plans for the increase of the group’s share capital by the end of December 2, 2014. The increase, which will be submitted to vote at the manufacturer’s shareholder meeting on December 2 2009, will be done by issuing 135 million new non-voting preferred bearer shares against cash contributions.

The first increase in capital is expected to take place in the first half on 2010, but details on the move will be released closer to that date.

“The envisaged capital increase is to secure refinancing of the planned participation in Porsche AG and therefore represents a milestone on the way to an integrated automotive group with Porsche,” the manufacturer said in a release.

VW will also ask its shareholders to decide whether the State of Lower Saxony is to receive two of the Supervisory Board seats. The German state plans to do so as it holds 15 percent of Volkswagen.

Volkswagen intends to name Hans Piech and Ferdinand Porsche members of the new group’s Supervisory Board. The two have already been named to replace Wendelin Wiedekin Holger Harterg back in August, and they are now looking to get seats for a full term of office.

The German group has posted increasing sales for September, giving it the much needed hope that, despite the crisis, they are on the right track. The future merger/takeover with/of Porsche, its until now major shareholder, will allow VW to get closer to the goal of overtaking Toyota as the world’s no. 1 carmaker by the end of the next decade.