Porsche, the renowned German automaker, has announced its acquisition of a majority stake in V4Drive Battery, marking a significant move in the restructuring of Varta, a major German battery manufacturer. As part of this strategic investment, Porsche will contribute €30 million to support Varta’s financial reorganization.
Varta, which has been navigating financial difficulties, reached an agreement on a comprehensive restructuring plan with key creditors and lenders. The plan aims to reduce Varta’s existing financial liabilities by €285 million, bringing the total debt down from €485 million to €200 million. The restructuring will involve the entry of new shareholders, including a company controlled by Varta’s majority shareholder Michael Tojner and a Porsche investment firm.
The restructuring plan includes a capital injection of €60 million, half of which will be provided by Porsche and Tojner’s company, with the remaining €60 million coming from existing lenders. This financial reorganization will secure Varta AG’s funding through the end of 2027.
In addition to the financial support, Porsche will assume a majority stake in V4Drive, Varta’s subsidiary focused on large-format lithium-ion round cells. These cells are crucial for the performance hybrid drive of the Porsche 911 Carrera GTS. However, Porsche’s acquisition of the majority stake is still pending antitrust approvals in several countries.
This move aligns with Porsche’s broader strategy, which was hinted at in July when the company revealed its interest in Varta to ensure a stable supply chain for the 911 Carrera GTS. Porsche’s investment will facilitate the construction of a second plant for V4Drive’s battery cells in Nördlingen, Bavaria, which will be contributed to V4Drive Battery GmbH as a part of Porsche’s investment. The German carmaker also plans for V4Drive to expand its customer base beyond Porsche.
Lutz Meschke, Deputy Chairman and Member of the Executive Board for Finance and IT at Porsche AG, emphasized the strategic importance of this acquisition. “With the planned majority takeover of V4Drive, we aim to drive the company forward and make an important contribution to keeping key technologies in Germany,” Meschke stated.
Varta CFO Marc Hundsdorf echoed the significance of the deal, stating, “With today’s commercial agreement, a decisive breakthrough for a sustainable future concept for Varta has been achieved. The financial restructuring measures and commitments from investors have provided the foundation to fully realize Varta’s potential for innovation and technology leadership, while securing the Group’s financing and liquidity for the long term.”
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