Varta emerges from restructuring procedure with fresh capital

Varta AG has successfully completed its financial and strategic restructuring, as the company announced on Tuesday.

Michael Tojner and Dr. Ing. h.c. F. Porsche AG are now new indirect shareholders, as reported by the Ellwangen-based battery manufacturer. In addition to a cash and non-cash capital increase of €60 million, they provided a refinancing of €60 million, which significantly strengthens Varta’s liquidity. This will ensure that the company can finance the next operational growth steps and future investments.

Furthermore, debt has been “significantly” reduced to €230 million. After completing the structural and financial measures of the restructuring concept, the company will now implement them operationally by the end of 2027.

In July 2024, Varta filed for a procedure under the German StaRUG law (Corporate Stabilization and Restructuring Act). The procedure is intended to avert a potential insolvency, but it can only be applied for if the company is not yet insolvent but insolvency is imminent.

Varta has now completed this procedure, according to the statement. It now intends to “focus fully on growth in its core business and its role as an innovation leader in high-end energy storage solutions”. The production and research capacities at domestic locations will be secured. “The goal is to lead the company onto a profitable and sustainable growth path in the short term,” Varta said.

Tojner is not only a new shareholder. The Austrian entrepreneur has held a majority stake in the German battery manufacturer since 2007 and is also the Chairman of Varta AG’s Supervisory Board. “After these difficult times, I am still firmly convinced of the market potential and technological strength of the company,” he said. “Europe and Germany need a powerful battery manufacturer to take advantage of the numerous growth opportunities in this sector.”

Porsche’s chief financial and IT officer, Jochen Breckner, emphasized the collaboration between the two companies in the field of ultra-high-performance lithium-ion cylindrical cells. “As a new shareholder, we want to contribute to keeping and further developing important future technologies in Germany,” said Breckner.