For $1 billion euros, Porsche sells its stake in Bugatti Rimac and the Rimac Group

Following government permission, the German sports car manufacturer Porsche sold its stakes in Bugatti Rimac and Rimac Group for one billion euros on Wednesday.

According to Porsche, it will get almost 1 billion euros, of which 250 million would be used to pay for its pension obligations.

To concentrate on its primary business, the German company decided at the end of April to sell its shares in Bugatti Rimac and Rimac Group. This to a group headed by the New York-based investment firm HOF Capital.

In order to include the renowned Bugatti name, Porsche and Rimac Group established Bugatti Rimac as a joint venture firm in 2021.

That joint venture, Rimac Group held a minority stake of 55% and Porsche held a minority stake of 45%.

Additionally, Porsche held a 20.6% share in Rimac Group.

With the cash inflow of 1 billion euros and the paying of pensions, Porsche anticipates that the net cash flow margin for the automotive division would rise to a range of 5.5 to 7.5% by 2026 (the prior prediction was between 3% and 5%).