The restructuring of German battery manufacturer Varta has been concluded, with Porsche and Austrian investor Michael Tojner committing €60 million to revive the financially troubled company.
The agreement includes the removal of existing shareholders, whose shares will become valueless, and the delisting of Varta’s stock. The Stuttgart Regional Court dismissed all appeals against the plan, marking the process as legally binding.
See also: German Regulator Approves Porsche’s Stake in Varta, No Competition Concerns Found
Germany’s Federal Cartel Office had already approved Porsche’s plans to acquire a stake in Varta. The restructuring was initiated under the StaRUG Restructuring Act, allowing the company to reorganize by eliminating shareholder stakes. “The restructuring plan provides for a simplified decrease of the Company’s share capital to €0 as part of the financial restructuring. This will result in the exit of the Company’s current shareholders without compensation and the delisting of the Company’s shares,” Varta explained.
In October, Varta received a bridge loan and agreed on a reorganization plan involving lenders, promissory note creditors, and its major shareholders. The arrangement included Porsche and Tojner each investing €30 million, while Varta’s debt was reduced through a haircut. As part of the deal, Porsche will take a 70% stake in Varta’s battery subsidiary, V4Drive.
With the court ruling in place, Varta emphasized the importance of the measures: “This measure in combination with a haircut and a parallel increase in funds will bring about sustainable financing of the company and make it fit for the future.” The dismissal of all complaints ensures no further legal obstacles remain as the company focuses on stabilizing its operations.