Porsche invests in Varta; takes majority stake in battery production
Varta agreed on a restructuring concept with “strategic” creditors and lenders, the German stock corporation announced. The measures will “reduce the existing financial liabilities by €285 million from €485 million to €200 million in the future.” It envisages the entry of a company controlled by Varta majority shareholder Michael Tojner and a Porsche investment company as new shareholders.
Together, they will provide “€60 million in new equity,” Varta explains. Each of the above-mentioned companies will foot 50 per cent of the bill. Existing lenders will give a further 60 million euros. The reorganisation concept will secure the financing of Varta AG until the end of 2027.
On top of providing Varta with additional capital, Porsche will take over a majority stake in Varta’s battery subsidiary V4Drive. However, the latter is still “subject to antitrust approvals in various countries,” as Porsche points out. In this company, Varta bundles the business for large-format lithium-ion round cells, which are used in the performance hybrid drive of the Porsche 911 Carrera GTS.
It was announced back in July that Porsche was exploring an investment in Varta to secure the supply chain for the 911 Carrera GTS. It is now certain that the sports car manufacturer will acquire a majority stake in V4Drive as part of a capital increase and will complete the construction of a second plant for these cells in Nördlingen (Bavaria). The plant will then be made available to the company. “Porsche wants to provide it as a contribution in kind to V4Drive Battery GmbH. It is planned that V4Drive will also address further customers beyond of Porsche,” the German carmaker says in its press release.
“Varta and Porsche are already working closely together on the topic of high-performance battery cells. With the planned majority takeover of V4Drive, we aim to drive the company forward and would make an important contribution to keeping key technologies in Germany”, said Lutz Meschke, Deputy Chairman of the Executive Board and Member of the Executive Board for Finance and IT at Porsche AG.
“With today’s commercial agreement between all parties, a decisive breakthrough for a sustainable future concept for Varta has been achieved,” says Varta CFO Marc Hundsdorf. “With the financial restructuring measures and the commitments of individual investors, we have created the balance sheet basis to fully realise Varta’s potential for innovation and technology leadership as well as being a reliable partner and employer. With the implementation of the measures agreed today, the Group’s financing and liquidity are now sustainably stabilised and secured for the long term.”
0 Comments