Shares down nearly 46% (Il Sole 24 Ore Radiocor) - Frankfurt, 19 Aug - Shares in Varta plummeted after the troubled German battery producer said it reached a debt restructuring deal including a debt haircut and a capital reduction, followed by a capital increase.

At 0959 GMT, Varta was down 45.66% at 2.104 euros.

The restructuring of the balance sheet 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%.

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(RADIOCOR) 19-08-24 12:10:48 (0197) 5 NNNN