- It's possible to refresh Varta - Porsche is involved.
Struggling battery giant Varta finds a route out of financial turmoil with assistance from its significant client, Porsche. The sports car manufacturer is ready to offer financial aid to the Ellwangen-based company, which is in dire straits. Varta has reached an agreement with its key creditors and lenders regarding a restructuring scheme, as proclaimed by the corporation.
The plan intends to significantly decrease the company's debt load and inject fresh funds. It comprises the entry of a firm controlled by Varta's primary shareholder, Michael Tojner (MT InvestCo), along with a Porsche investment firm, as new shareholders. This restructuring plan will guarantee the financing of Varta AG till the end of 2027.
Planned debt reduction - Porsche invests 30 million euros
The present debt burden of 485 million euros is projected to decrease to around 200 million euros through a debt reduction and extension of loans. MT InvestCo and the Porsche investment company will contribute a combined 60 million euros in fresh capital and receive new shares of Varta in return. Once all capital measures are completed, MT InvestCo and Porsche will each hold a 32% stake in Varta, while other financiers will collectively hold 36%.
Previously, Porsche announced its intentions to acquire a majority stake in Varta's automotive battery subsidiary, V4Drive Battery. Additionally, Porsche expressed its willingness to collaborate with other partners in financing the restructuring of Varta AG, with its investment amounting to 30 million euros.
Varta battery in the Porsche 911 Carrera
As reported by Porsche, plans include acquiring a majority share in V4Drive Battery GmbH through a capital increase, mainly through non-cash contributions. In this company, Varta consolidates its operations for large-format lithium-ion round cells, which are utilized in the hybrid drive system of the Porsche 911 Carrera GTS.
Varta's strategic partnership with Porsche continues with the automaker investing 30 million euros, aiming to reduce Varta's debt to approximately 200 million euros.
The Porsche 911 Carrera, benefitting from Varta's advanced battery technology, will see an enhanced collaboration due to Porsche's active role in Varta's restructuring, engaging with Varta's subsidiary V4Drive Battery.
