Porsche will gain access to high performance batteries for its electric sports and hybrid cars, in the process, Reuters further noted.
20 Aug 2024 | 1542 Views | By Autocar Pro News Desk
Varta, the German battery firm agreed to a restructuring deal with its creditors on Saturday, effectively getting Porsche to rescue the ailing business, Reuters reported.
The transaction, agreed upon after days of negotiations, will pare Varta's debt from 485 million euros to 200 million euros initially, the firm noted.
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Varta, the German battery firm agreed to a restructuring deal with its creditors on Saturday, effectively getting Porsche to rescue the ailing business, Reuters reported.
The transaction, agreed upon after days of negotiations, will pare Varta's debt from 485 million euros to 200 million euros initially, the firm noted.
Varta was looking at a compromise between Michael Tojner, a big shareholder in the firm, creditors and Porsche, to reduce its debt and raise new capital, Reuters reported.
As per the agreement, Porsche and Tojner will be the new owners of Varta and collectively pump in 60 million euros, the newswire noted.
An additional 60 million euros will be garnered from creditors in the form senior structured loans, the company noted, stating that a third investor could be onboarded in the future, Reuters reported.
"We are in advanced discussions with other investors who would like to join us," Michael Ostermann, the CEO of varta informed the publication.
Porsche will gain access to high performance batteries for its electric sports and hybrid cars, in the process, Reuters further noted.
Porsche further noted on Saturday that it would acquire a majority interest in the German battery maker's V4Drive Battery unit, through a capital increase chiefly through a distribution in kind, Reuters noted.
In July, Ostermann had planned a pre-insolvency restructuring for Varta, which had debt it could not take care of, post making costly investments, the newswire reported.
Varta CFO Marc Hundsdorf noted that with the latest measures in place, the group has been 'secured in the long term, Reuters reported.
Current shareholders will be left without anything, as Varta will be taken off the stock exchange following the restructuring, Reuters noted.