Qatar plans to sell up to half of its Volkswagen preference shares, cashing in on recent gains and raising around 1.6 billion euros ($2.4 billion) for possible future deals, it was reported Tuesdday. The news sent VW preference shares - widely expected to join Germany's blue-chip DAX index once VW ordinary, voting shares drop out due to low free float - down more than 13 percent by 1149 GMT. Qatar Holding (QH), the investment arm of the country's sovereign wealth fund, said it was selling 25 million preference shares in Europe's biggest carmaker “to enhance the liquidity” of the preference shares, but added it remained committed to its Volkswagen investment. The world's largest liquefied natural gas exporter has ramped up investments since the summer after previously slowing down its activity as financial markets plummeted and oil revenue fell. A source close to the deal told Reuters Qatar would make about 750 million euros from the sale. “Qatar is exhibiting exit strategies akin to a private equity fund that makes wise profits and knows when to cash in,” said John Sfakianakis, chief economist at Banque Saudi Fransi-Credit Agricole. “It has shifted its investment interests as market dynamics change and that is what they are doing now.” QH said in a statement it would continue increasing its holding in Volkswagen as previously announced. That would give Qatar the third largest voting stake in VW behind automotive group Porsche SE and VW's home state of Lower Saxony. Qatar's voting stake in VW was 6.78 percent in August. Qatar also agreed on a lock-up period for the remainder of its non-voting VW preference shares until Dec. 31 this year.
