VARTA AG, a well-known manufacturer of rechargeable batteries, has announced a significant development in its restructuring efforts. The company has reached an agreement with its financial creditors and strategic investors on the key economic elements of a long-term viable restructuring concept.
The restructuring plan includes several critical elements. First, VARTA AG’s financial debt will be reduced from €485 million to €200 million through a substantial cut of €285 million. As part of the capital restructuring, the company’s share capital will be reduced to zero, followed by a capital increase of €60 million, including a cash injection of €40 million.
To strengthen the Group’s liquidity position and to fund future strategic investments in technology development, an additional €60 million will be provided through a senior secured loan facility. The restructuring will introduce new investors, with Dr. Ing. h.c. F. Porsche AG (“Porsche”) and a company controlled by DDr. Michael Tojner (“MT InvestCo”) becoming shareholders following the recapitalization.
Under the new ownership structure, the existing lenders will hold 36% of the economic equity of VARTA AG, while MT InvestCo and Porsche AG will each hold 32%. Both existing and new debt will mature on December 31, 2027.
Marc Hundsdorf, CFO of VARTA AG, stated that this agreement creates a sustainable future for the company and ensures the long-term stabilization of the Group’s financing and liquidity. CRO Michael Giesswein emphasized that the restructuring concept achieves a balance between the interests of all parties involved.
Dr. Michael Tojner, Chairman of the Supervisory Board and majority shareholder, emphasized the potential of VARTA AG to make a significant contribution to battery cell research and production independence in Europe.
The company has committed to keep the public informed about the progress of the restructuring process. This agreement is a decisive step towards ensuring the stability of VARTA AG and positioning the company for future growth in the battery technology sector.
Source: VARTA AG – News & Press
