Image: Montana Tech Components
The planned renovation is therefore considered secured. The institutes have extended their financing under changed conditions until the end of 2026, according to the company. Varta will receive 50 million euros through a capital increase from the main shareholder Montana Tech of the Austrian investor Michael Tojner. The company explained that this would cover the short-term financing requirements.
The company announced at the weekend that it is now a matter of adjusting production and structural costs and investing in growth areas such as the energy transition and e-mobility.
This would create the central prerequisites for stabilization and long-term positive development of the company. This also includes a reduction in personnel costs. The Varta share, which has been shaken for a long time, rose by a good five percent on Monday.
Financing requirements covered by capital increase
According to Varta, the concept for the conversion was drawn up on the basis of a restructuring report by the auditing company KPMG. The short-term financing needs identified therein are covered by the capital increase that has just been completed. With this, Varta brought in around 51 million euros gross last week.
According to the information, the agreement with the banks also provides for an extension of the financing until the end of 2026 and changes in the credit conditions. It is still subject to the approval of the banks. The Varta majority shareholder Montana Tech Components has already made the restructuring contribution agreed with the banks through its participation in the capital increase.
weakness in demand
The conversion concept was a prerequisite for the company of the Austrian Tojner to inject money. The planned dilution of their shares scared off investors a week ago. In addition, the general market turbulence in connection with the banking crisis and monetary policy had a negative impact at the end of last week. The price gains made by the Varta share since the beginning of the year had been pulverized. And in the long term, disillusionment is likely to prevail among shareholders: since the high of more than two years ago, the paper has lost 88 percent.
The company has been struggling for a long time with a weak demand for the once so fast-growing lithium-ion button cells, which are installed in headphones, for example. In addition, the company’s own V4Drive electric car battery cell cost a lot of money.
Varta intends to present its figures for the 2022 financial year on April 26, almost a month later than originally planned. However, this should not initially change anything about the stock market index membership. The regulations of Deutsche Börse provide for a one-month grace period if a company fails to submit audited annual financial statements 90 days after the end of the reporting period.
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