Varta seems to have found a way to ensure the battery company’s survival. There is now a restructuring plan. An important customer is on board as an investor.
A way out of the crisis is emerging for the ailing battery company Varta. The sports car manufacturer and major customer Porsche is lending the Ellwangen-based company financial support. Varta has reached an agreement with important creditors and lenders on a restructuring plan, the stock corporation announced.
The concept will “significantly reduce the company’s debt and provide it with fresh liquidity.” It envisages the entry of a company controlled by Varta majority shareholder Michael Tojner (MT InvestCo) and a Porsche holding company as new shareholders. The restructuring concept will ensure the financing of Varta AG until the end of 2027.
Debt cut planned – Porsche invests 30 million euros
According to the information, a debt cut and the extension of loans are intended to reduce the debt burden from the current 485 million euros to around 200 million euros. MT InvestCo and the Porsche investment company would then inject a total of 60 million euros in fresh capital and receive new Varta shares in return. After all capital measures have been completed, MT InvestCo and Porsche will each hold 32 percent of Varta, and the other financiers together will hold 36 percent.
Porsche had previously announced that it wanted to take over a majority stake in Varta’s car battery subsidiary V4Drive Battery. Porsche also said it was willing to participate “with other partners” in the financial restructuring of Varta AG. Porsche’s investment would amount to 30 million euros.
Varta battery in the Porsche 911 Carrera
“In this context, it is planned that Porsche will acquire a majority stake in V4Drive Battery GmbH through a capital increase – largely against a contribution in kind,” Porsche announced. In this company, Varta is bundling the business for large-format lithium-ion round cells that are used in the hybrid drive of the Porsche 911 Carrera GTS.
Source: Stern
