This article first appeared on GuruFocus .
HOF Capital and BlueFive Capital are in discussions around a potential transaction involving Porsche AG ( POAHY ) and the venture that owns the Bugatti supercar brand, according to people familiar with the matter. After initial talks, the two investors are exploring a possible partnership to acquire Porsche's stake in Bugatti Rimac, a joint venture between Porsche and Rimac Group, with the discussions also possibly extending to Porsche's holding in Rimac Group itself. People with knowledge of the situation said the conversations remain fluid, with the structure still under review.
Those people said the deal under discussion could be valued at more than 1 billion, though terms are not finalized and could still change. As part of the scenario being considered, HOF Capital may provide fresh capital to Rimac Group to help fund its expansion, according to the same people. BlueFive Capital is a private equity firm led by Hazem Ben-Gacem, formerly of Investcorp, while HOF Capital was co-founded by Onsi Sawiris, the son of billionaire Naguib Sawiris and grandson of the late Egyptian construction magnate Onsi Sawiris.
Bugatti Rimac, which is controlled by Rimac Group, has owned the Bugatti brand since 2021, and a deal could possibly be reached in the coming weeks, the people said, even as details remain subject to change. A representative for Rimac said the company is in talks with Porsche about the future ownership structure of Bugatti Rimac but declined to comment further because discussions are ongoing and no agreement has been reached. Spokespeople for Porsche, HOF Capital and BlueFive also declined to comment.
