It will not be until 2023 that the company will agree on a restructuring with its majority shareholder and banks. Now donors are being asked for help again. The bad news shocks long-suffering investors.
The ailing battery company Varta is once again calling on its lenders for help. A collapse in demand, cheap offers from competitors in Asia and a cyber attack set the company back in its restructuring.
Varta announced in Ellwangen that the concept from last summer is “no longer appropriate” to return to a profitable growth path as planned by the end of 2026. The board is negotiating a solution with the financiers.
Lowest level since the IPO in 2017
The Varta share price crashed after the news. Shortly after the start of trading, the paper lost up to 34 percent to 9.30 euros, falling to its lowest level since the IPO in 2017. So far this year, the paper has lost more than half of its value, and even more than three in the last five years Quarter.
According to the information, Varta’s crisis has worsened across the board. The demand for small lithium-ion button cells for headphones, for example, fluctuates greatly, and the demand for energy storage for electricity from solar systems has unexpectedly collapsed significantly. The group also complained about cheap prices from competitors for energy storage and ongoing problems in the supply chains.
Hacker attack in February
To make matters worse, hackers attacked Varta’s computer systems in February and paralyzed production for weeks. It was now said that the economic consequences of the cyber attack could not yet be fully estimated. The company therefore had to postpone the presentation of its consolidated financial statements for the past year. That’s why the company is likely to be kicked out of the SDax small-cap index.
In 2023, Varta agreed with its majority shareholder Michael Tojner and the banks on a far-reaching restructuring. The Austrian Tojner injected 50 million euros as part of a capital increase, and the banks granted easier credit conditions and extended the contracts. The steps were intended to stabilize the company financially. But in view of the latest developments, Varta needs support again.
Source: Stern
