After financial challenges, German battery manufacturer Varta AG is facing a comprehensive restructuring. The plan is to reduce the companyʼs liabilities to 200 million euros through a debt cut for which the banks would waive 285 million euros. Furthermore, Varta is said to receive a capital injection of 120 million euros to be provided in equal parts by investors and creditors, with Porsche contributing 30 million euros. As part of the restructuring, the existing shareholders will be completely squeezed out of the company, and the share capital will be reduced to zero, removing Varta from the stock exchange.
Porsche interested in lithium-ion round cells
As part of the restructuring, Porsche is seeking a majority stake in Vartaʼs V4Drive Battery subsidiary. The company specializes in large-format lithium-ion round cells which are used in the hybrid drives of Porscheʼs 911 Carrera GTS. The agreement includes the contribution of a production facility in Nördlingen, Germany, which is currently under construction. Porsche also plans to produce the cells for other customers in the long term. The acquisition is subject to antitrust approvals and the successful completion of the restructuring which is intended to secure the financing of Varta until 2027. According to the company, the financial difficulties are due to investments in business areas which turned out to be not as profitable as expected.
Sources:
https://www.tagesschau.de/wirtschaft/unternehmen/varta-sanierung-porsche-delisting-glaeubiger-schuldenschnitt-aktionaere-100.html
https://newsroom.porsche.com/en/2024/company/porsche-varta-deepen-strategic-partnership-37095.html
