German battery maker Varta is in talks with luxury sportscar maker Porsche about a potential investment that could see the carmaker take a stake in the company. Varta is currently exploring two restructuring scenarios that would involve a significant overhaul of the company’s financial structure.
The first scenario involves potential new investors, including existing Austrian majority shareholder Michael Tojner and Porsche. The second scenario involves financial creditors taking a stake in the company. Both scenarios would result in a reduction of Varta’s share capital to zero, leading to existing shareholders (except Tojner) losing their investment and the company being delisted.
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Porsche has confirmed that it is in negotiations to acquire a majority stake in V4Drive, Varta’s battery business, through a potential capital increase. However, the deal is contingent on Varta’s financial stability. Porsche has also indicated that it might be open to participating in a financial restructuring of Varta as a whole, but discussions are ongoing.
Varta’s restructuring plans are driven by its financial difficulties, with the company struggling to meet its targets. The company hopes to return to profitability by the end of 2026 through these restructuring measures.
This move highlights Porsche’s growing interest in the battery sector, which is crucial for the company’s electric vehicle ambitions. It also highlights the challenges faced by battery companies as they navigate a competitive landscape and strive for profitability.