Porsche Automobil Holding SE, the company that holds a controlling stake in Volkswagen AG, on March 19 said it raised its position in the carmaker to 53.1% from 52.2%.
Porsche said it invested about €400 million in the past few months to increase its share of voting rights in Volkswagen. CEO Hans Dieter Pötsch, who also chairs Volkswagen's supervisory board, said the company believes VW "has a significant potential to increase its value and that its current capital market valuation does not reflect this."
In the same release, Pötsch said Porsche would increase its annual dividend by 26% to €2.21 per share and that it expects net income of €3.4 billion to €4.4 billion in 2019, a figure that is largely dependent on Volkswagen's performance.
The group said its 2018 profit increased 6% year over year to €3.5 billion. Net liquidity fell to €864 million primarily due to the acquisition of Volkswagen shares.
Volkswagen operates 13 main brands, including Volkswagen Passenger Cars, Audi, ŠKODA, SEAT, Bentley and the Porsche brand. The German carmaker also operates Volkswagen Commercial Vehicles, Lamborghini, Bugatti, Ducati, Scania, MOIA and several brands under MAN.