The remaining shareholders will be left empty-handed as the company’s share capital will be set at zero, according to the German company’s announcement. According to the company, the concept specifically envisages the entry as new shareholders of a company controlled by previous Varda majority owner Dojner (MT Investco) and a Porsche holding company.
“Despite the current economic challenges, the company offers great potential to make Europe’s battery cell research and production more independent from Asian suppliers,” said Dojner, in an initial reaction, “Together with Porsche, we want to make that contribution. With today’s agreement, together we are the first important We have taken the step, which will ensure the stability of VARTA AG and pave the way for a new beginning.”
Great mountain of debt
Varda’s bankruptcy is not currently on the table, a company spokesperson said in response to an APA request. However, the so-called pre-bankruptcy procedure is in place. After costly bad investments, the traditional company was unable to pay its debts.
The battery company filed for pre-bankruptcy reorganization proceedings in July. According to previous statements by company boss Michael Ostermann, the group needs around 100 million euros in new money and a haircut to secure production until 2027. Varda owes nearly half a billion euros to major lenders such as banks and hedge funds.
“Advanced Discussions with Other Investors”
“We hope to have a solution at the end of August or the beginning of September,” Dojner told the “Frankfurter Allgemeine Zeitung” in early August. As Dojner announced at the time, the rescue concept now under discussion is to be implemented under, among other things, the German Corporate Stabilization and Restructuring Act (StaRUG).
Besides Tojner and Porsche, other partners may come on board. “We are in advanced discussions with other investors who want to join us,” Ostermann told the Reuters news agency.
Porsche plans to acquire Varda subsidiary V4Drive
In this context, Porsche also expressed its willingness to participate “along with other partners” in the financial restructuring of Varda AG. Porsche’s investment is 30 million euros. At Porsche, simulation games also include the acquisition of a majority stake in Varda subsidiary V4Drive, which specializes in car batteries.
Background mentioned by Porsche: At this company, Varta compiles the business for the large-format lithium-ion circuit cells used in the hybrid drive of the Porsche 911 Carrera GTS. A prerequisite for the acquisition of V4Drive is, among other things, antitrust approvals in various countries.
