Porsche puts an end to speculation and clarifies that there are no plans to sell Manthey: But why has the denial come so late?
What is behind the rumors that Porsche wants to sell its shares in Manthey? The car manufacturer has now made its position clear, stating that it “asks for your understanding that we do not comment on speculation or rumors.”
“Rumors are currently circulating in the press about a possible sale of Manthey by Porsche. These are completely unfounded,” a Porsche spokeswoman said. “Manthey is a long-standing and proven partner of Porsche. A sale is not planned.”
This should effectively rule out the sale of the 51 percent stake that Porsche AG holds in Manthey Racing GmbH. Nevertheless, the question arises as to why a clear statement was not made immediately.
Why did Porsche’s denial come so late?
Originally, the fact that Porsche AG is a publicly traded company seemed to play a role in this regard, as denying reports relevant to the financial market is more difficult than for a private company due to potential implications.
For example, a publicly traded company is not allowed to publish a denial of stock market-relevant information that later turns out to be false, as this constitutes market manipulation and misleading investors.
If information is stock price-relevant and false, the company may issue a correction—but only if it communicates truthfully and completely. It can therefore now be assumed with certainty that everything will remain as it is and that Porsche AG will continue to hold a majority stake in Manthey Racing GmbH in the future.
Manthey as an extension of Porsche
However, Porsche does not deny in its statement that an audit of the numerous investments that tie up the company’s capital in other companies has taken place.
The sports car brand recorded a significant drop in profits this year and therefore has to lay off some of its workforce. For this reason, Porsche also carried out a portfolio review, which included an examination, evaluation, and realignment of its investment business.
However, selling the Manthey shares would have been a heavy blow, as Porsche and Manthey are closely linked. The Nürburgring-based company is much more than just a racing team for the car manufacturer. In addition to the Porsche Track Experience and brand cups, it also handles the maintenance, construction, final assembly, and delivery of Porsche racing cars. It acts as an extension of Porsche in these areas. Manthey Racing GmbH, founded in 1996 as a racing team by racing legend Olaf Manthey, merged with Nicolas and Martin Raeder’s Raeder Automotive GmbH in 2013. The two brothers have also served as managing directors of Manthey since then. Porsche has also been involved since 2013, with Olaf Manthey now only active in an advisory role and as a shareholder.