Qatar Holding LLC Acquires Major Investment in German Automotive Companies

DOHA, Qatar -

- Investment Commitment Exceeds EUR7 Billion, Qatar Holding to own 17% Stake in Volkswagen AG and 10% Stake In Porsche SE

Qatar Holding LLC (”Qatar Holding”) announced today that it has reached a final agreement with Porsche Automobil Holding SE (”Porsche” or “PSE”) and the family shareholders of Porsche on Qatar Holding’s investment in Volkswagen AG (”Volkswagen” or “VW”), Porsche and the integrated car manufacturing group which is expected to result from the combination of VW and Porsche.

Under the agreement, Qatar Holding will acquire from PSE cash settled options on Volkswagen shares. Following the closing of the transaction and after having received all regulatory approvals, Qatar Holding is subsequently planning to acquire 17 percent of Volkswagen ordinary shares thus becoming the third largest shareholder alongside PSE and Lower Saxony. Qatar Holding will also acquire a 10% shareholding in PSE common shares from the Porsche and Piech families and provide PSE with financing by contributing to PSE’s existing syndicated loan facility. Qatar Holding’s overall investment commitment across all components is in excess of EUR7 billion.

Porsche will establish research and development and testing facilities in Doha. In addition, Porsche and Qatar Holding have agreed to explore other areas of co-operation in the fields of research and development, technical service and support in the State of Qatar.

His Excellency Sheikh Hamad Bin Jassim Bin Jabr Al-Thani, Prime Minister and Minister of Foreign Affairs of Qatar, stated: “We are pleased to announce today a major investment in one of the largest automotive groups in the world and one of the largest industrial groups in Europe. This transaction is consistent with the vision of His Highness the Emir to invest in world-class global companies that benefit the State of Qatar by diversifying our national economy and producing strong and stable long-term financial returns. Porsche and Volkswagen are great additions to our investment portfolio. They will also bring additional benefits to the State of Qatar in research and development, technology and training.”

Dr Hussain Al-Abdulla, Vice Chairman of Qatar Holding commented: “Qatar will continue diversifying its global investment portfolio and today’s agreement marks another significant step in that process. This is a signature investment for Qatar Holding and represents our first diversification into industrial manufacturing. We are delighted to be investing in what will be a giant in the global automotive industry and believe that this agreement represents a good outcome for all the parties involved.”

The Porsche and Piech families, Porsche, as well as Volkswagen and Lower Saxony have welcomed Qatar Holding as a new long-term strategic investor. Today’s announcement is a further advancement in the discussions between PSE and VW to create an integrated car manufacturing group.

Ahmad Al-Sayed, CEO of Qatar Holding stated: “We are delighted to partner with Porsche and Piech families, the State of Lower Saxony, the managements of Porsche and Volkswagen, and to invest in Volkswagen and Porsche - two of the world’s most respected automotive companies. As a long-term strategic investor, we believe that the combination of Porsche and VW represents a unique investment opportunity for Qatar Holding and we are pleased to play an integral role in bringing these two great companies together. We look forward to making a contribution to the success of the combined group and to explore new avenues of cooperation within the State of Qatar in automotive research and related technologies.”

NOTES TO EDITORS:

QATAR HOLDING LLC

Qatar Holding LLC is established as the strategic and direct investment arm of Qatar Investment Authority. With the vision of becoming a world class investment corporation and the preferred partner of choice for investors, financiers and other stakeholders; it is envisaged that the already significant investment portfolio of Qatar Holding will continue to grow. Key investment assets of Qatar Holding include Barclays plc, Credit Suisse Group, J Sainsbury plc, Qatar Exchange, Qatar Telecom, Qatar National Bank, London Stock Exchange and Lagardere SCA.

Source: Qatar Holding LLC

For further information, contact: Citigate Dewe Rogerson: London: Patrick Donovan / Toby Moore / Hannah Dean, +44-20-7638-9571; Doha: Seb Hoyle +974-452-8335; HERING SCHUPPENER Consulting, Germany: Matthias Poth / Oliver Thompson +49-69-92-18-74-80/81