Porsche to take majority stake in V4Drive Battery unit (Il Sole 24 Ore Radiocor) - Berlin, 19 Aug - Troubled German battery producer Varta said it reached an agreement on the key economic cornerstones of a long-term viable restructuring of the balance sheet that initially focuses on a haircut, which will reduce the existing financial liabilities from 485 million euros to 200 million. The second pillar of the reorganization concept is the complete reduction of Varta's share capital to zero.

Immediately following the capital reduction, Varta will be provided with 60 million euros in new equity through a capital increase, of which 40 million in cash, and a further 60 million in new funds through a senior secured loan to strengthen the group's liquidity and for future strategic investments in technological development.

The capital increase will be initially subscribed by the German sports car manufacturer Dr Ing. h.c. F. Porsche and a company controlled by Michael Tojner (MT InvestCo).

The new senior financing of 60 million euros will be provided by existing lenders.

In future, they will also participate in the economic equity of Varta via a virtual shareholding of 36%, with the remaining 64% being shared by MT InvestCo and Porsche, each with 32%.

Porsche said it will take a majority stake in Varta's V4Drive Battery unit for large-format lithium-ion round cells, used in the performance hybrid drive of the Porsche 911 Carrera GTS, via a capital increase mainly through a contribution in kind.

The construction of a further production facility for booster cells in Nordlingen, which was decided in spring 2024 and advanced by Porsche, will continue as planned. The facility is scheduled to go into operation next year. Porsche wants to provide it as a contribution in kind to V4Drive Battery, which will address further customers beyond Porsche.

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(RADIOCOR) 19-08-24 09:52:15 (0156) 5 NNNN