Battery manufacturer Varta has made significant progress toward financial recovery through new investments and agreements with creditors. Austrian investor Michael Tojner, already a major shareholder in Varta, and sports car manufacturer Porsche are providing a total of €60 million in equity to support the company’s restructuring efforts.
Porsche is acquiring a 50% stake in Varta AG and aims to take approximately 70% ownership of the subsidiary V4Drive Battery. V4Drive consolidates Varta’s business in large-format lithium-ion cylindrical cells, which are utilized in the performance hybrid drive of the Porsche 911 Carrera GTS. This move is essential for Porsche to secure its supply chain and maintain key technologies within Germany.
As part of the restructuring, creditors have agreed to forgive more than half of Varta’s debt. From nearly €485 million in liabilities, about €200 million will remain after the debt reduction. Additionally, Varta is set to receive bridge financing of €30 million to further stabilize its financial position.
However, some shareholder representatives have expressed dissatisfaction with the approach. They criticize that only the major shareholder, Tojner, is receiving new shares during the capital increase, leaving other shareholders without additional equity. They have described the situation as an “expropriation.” Varta contends that a public capital increase is not technically feasible without an audited annual financial statement required for a stock exchange prospectus.
Source: Varta AG
