FAW-Volkswagen, FAW Volkswagen delayed replenishment overall market doubts

Posted on 11/20/2015 10:20:43 AM

Volkswagen Group to postpone the FAW - Volkswagen increased stocks.
November 19, the German Volkswagen Group Board of Management, Volkswagen Group (China) President and CEO Heizmann accept the "First Financial Daily" reporters, he said: "Based on financial considerations, we have decided to postpone the FAW - public rights issue, this decision is not canceled, is delayed, the time is 2 - 3 years "
A securities analyst to accept the "First Financial Daily" reporters, said the Volkswagen Group to postpone the FAW - Volkswagen shares increase, in the short term it is the overall market share of the FAW is a major negative, time node after waiting for the capital markets, become uncertain again.
Volkswagen no money
Since September 18, the public is reported EA189 series engines installed cheating software, resulting in normal driving condition, vehicle exclusion of nitrogen oxides indicators over the US legal standard of 40 times, Volkswagen has a gasoline engine has been accused of section also installed cheating software, developed by Audi V6 diesel engine also has such problems.
Although Volkswagen denies cheating software is installed on the V6 diesel engine, but according to figures released by Volkswagen, the world has at least 11 million Volkswagen fraud involving emissions.
In response to government emissions may arise ticket fraud, financial aid, legal proceedings and recalls of vehicles occurred in early November, Volkswagen will respond to the "crisis" of preparatory funds raised to 8.7 billion euros, while in the previous, the company's provision for capital of 6.7 billion euros. According to ISI's investment bank is expected to cost the public response to the crisis may ultimately be as high as 29 billion euros.
Heizmann In an interview with this reporter said that at present the Volkswagen Group FAW - Volkswagen's assessment work has made good progress, it will end soon. But at the same time due to the impact of diesel emissions event, the Volkswagen Group's financial resources is restricted, public policy made the delay is based on the consideration in this regard. Meanwhile, Heizmann even told this reporter stressed that the impact of China's diesel emission events only "postponed FAW - Volkswagen's growth stocks," one that all investments had promised in China are not affected, and decide in the future continue to increase by about 30,000 employees in China within a few years.
Heizmann said, according to the Board of Directors of a new round of public decision-making, regional and various car brands will be given more power, and China as a mass in the world's largest and important market, China needs to Volkswagen and FAW - Volkswagen, Shanghai Volkswagen Volkswagen together maintain the leading position in China.
FAW shares IPO short-term negative
According to FAW shares IPO plan, the company will include all of the FAW Group's automobile companies, and high-quality assets in which the most promising of the capital market is the FAW - Volkswagen's assets.
FAW-Volkswagen Automotive Co., Ltd. was established in 1991, after in 1995 it will be included Audi, FAW-Volkswagen's ownership structure changed to: 60% FAW, Volkswagen 30 percent, Audi 10%, and maintained so far. It is also the shareholding ratio of the Chinese automobile joint venture in China far more rare, a foreign joint venture car prices.
With the FAW - Volkswagen's sustainable development, Volkswagen has also repeatedly expressed increasing shares of FAW - Volkswagen hopes. It is reported that FAW Group and Volkswagen have agreed to make adjustments in principle. It is reported that the ownership structure of both China and Germany is likely to adjust from the current 60:40 to 51:49, both Chinese and foreign parties on the above numbers formal statements.
It is also based on this consideration, agreed that the capital market, the FAW - Volkswagen shareholding structure clear day, it is the starting point FAW official start of IPO shares, therefore, the Volkswagen Group launched FAW release - after the news of the public rights issue, The analysts believe that the short term this is a major negative FAW IPO shares, because they can not judge, Volkswagen shares specific needs, even after relatively transparent time nodes have become blurred.
But the long-term development perspective, the Volkswagen Group increased shares planned to be postponed even, but it must also share with FAW signed a specific equity repurchase program, to ensure the smooth conduct of FAW shares of the IPO.
But overall IPO shares after the FAW, Volkswagen how to increase the FAW - Volkswagen, the industry there are two views, one ahead of the signing of the specific public repurchase agreement with FAW shares, but does not affect the overall valuation of capital markets FAW shares, future capital FAW Volkswagen - When Volkswagen, FAW will continue holding the shares must FAW - Volkswagen, but shares in the public official by FAW - Volkswagen before, this part of the shares of listed companies will have to calculate the return on investment. Another view was that if the form by FAW Volkswagen shares to realize the shares of FAW and FAW - Volkswagen stake to other relations.

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