Varta is making significant progress with its restructuring efforts
Tojner, who was already a major shareholder in Varta, and Porsche are providing a total of €60 million in equity. Porsche is not only acquiring a 50 percent stake in Varta AG but also aims to take around 70 percent of the subsidiary V4 Drive Battery. This company consolidates Varta’s business for large-format lithium-ion cylindrical cells, which are used in the performance hybrid drive of the Porsche 911 Carrera GTS. Porsche’s plans were revealed in August.
For Porsche, the continued existence of Varta and V4 Drive Battery is crucial to safeguard its supply chain. “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”, commented Lutz Meschke, Deputy Chairman of the Executive Board and Member of the Executive Board for Finance and IT at Porsche AG, in August on the plans.
As part of the restructuring process, creditors have agreed to forgive more than half of the company’s debt. Out of nearly €485 million in liabilities, approximately €200 million remains after the cut. Additionally, Varta is set to receive bridge financing of €30 million.
Shareholder representatives are dissatisfied with the approach taken. They criticise that only the major shareholder Tojner is receiving new shares, while they are left empty-handed in the capital increase. The term ‘expropriation’ is being used. Varta argues that a public capital increase is not technically feasible, as the company would need an audited annual financial statement for the required stock exchange prospectus.
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