Battery manufacturer Varta has taken a major step toward financial recovery, aided by a bridge loan and agreements with creditors, bondholders, Austrian investor Michael Tojner, and sports car manufacturer Porsche. These measures include a total equity injection of €60 million from Tojner and Porsche, with Porsche acquiring a 50 percent stake in Varta AG and aiming to secure a 70 percent share in its subsidiary, V4 Drive Battery. This subsidiary specializes in large-format lithium-ion cylindrical cells, which are used in high-performance hybrids like the Porsche 911 Carrera GTS.
For Porsche, maintaining Varta and V4 Drive Battery is vital to its supply chain. “With the planned majority takeover of V4 Drive, we aim to drive the company forward and make an important contribution to keeping key technologies in Germany,” said Lutz Meschke, Deputy Chairman of Porsche, in a statement from August.
On the positive side, this partnership ensures the survival of Varta and provides significant financial support. The involvement of a strong industry player like Porsche also strengthens Varta’s position in the battery market, particularly in high-performance automotive applications.
However, not everyone is satisfied with the approach. Shareholder representatives have expressed frustration, as only Tojner, the major shareholder, is receiving new shares, leaving other shareholders without benefits from the capital increase. The term “expropriation” has been raised in response to this situation. Varta argues that a public capital increase is not feasible due to the lack of an audited financial statement necessary for a stock exchange prospectus.
Additionally, as part of its restructuring process, Varta’s creditors have agreed to reduce the company’s debt from €485 million to approximately €200 million. Varta is also receiving bridge financing of €30 million. While this reduces financial pressure, it also means Varta must continue managing its remaining liabilities carefully.
