- Porsche plans to acquire the subsidiary of Varta.
Luxury car brand Porsche is prepared to put money into faltering battery giant Varta. The German automaker intends to claim a significant stake in Varta's electric vehicle battery division, V4Drive Battery, as per reports from Porsche AG. The investment, estimated at 30 million euros, also includes Porsche's agreement to join forces in Varta AG's financial recovery plan.
Porsche's investment in V4Drive Battery will predominantly take place through a capital increase, primarily through the transfer of assets in-kind. V4Drive Battery is where Varta conducts business related to large-format lithium-ion cylindrical cells, which play a crucial role in the hybrid powertrain of the Porsche 911 Carrera GTS.
The financial restructuring process, which Porsche is a part of, is scheduled to occur within the context of intended insolvency proceedings. However, the acquisition of V4Drive Battery is subject to antitrust clearances across various nations.
Earlier in August, Michael Tojner, Varta's major shareholder, expressed hopes of settling Varta's future by year-end. According to Tojner, a viable solution could be in place by late August or early September. This solution would then need to undergo the process governed by the Unternehmensstabilisierungs- und -restrukturierungsgesetz (StaRUG). Varta had filed for preliminary insolvency proceedings in July.
To ensure continuous production until 2027, Varta previously disclosed the necessity of procuring approximately 100 million euros in additional capital and reducing its debt burden. The company currently owes substantial financial institutions, including banks and hedge funds, roughly 450 million euros.
- With the investment, Porsche envisions a stronger future for electric vehicles, as their collaboration with Varta's V4Drive Battery division could lead to advancements in large-format lithium-ion cells key to Porsche's hybrid powertrains.
- As Porsche works towards securing its stake in Varta's electric vehicle battery division, the company is optimistic that this strategic move will shape a brighter future for both their brands, contributing to sustainable advancements in the automotive industry.
