Porsche to invest in Varta as part of financial restructuring deal
Tojner and Porsche will become the new owners of Varta and together provide a capital injection of 60 million euros, as per the agreement.
German sports car manufacturer Porsche is investing in the struggling battery firm Varta.
The German battery maker has finalized a restructuring agreement with its creditors, bringing on Porsche as part of the deal.
The agreement will reduce Varta’s debt from 485 million euros (USD 534.86 million) to 200 million euros initially, the company said, according to a report by Reuters.
Tojner and Porsche will become the new owners of Varta and together provide a capital injection of 60 million euros, as per the agreement. An additional 60 million euros will come from the creditors as senior secured loans, and a third investor could come on board later.
“We are in advanced discussions with other investors who would like to join us,” Varta CEO Michael Ostermann told Reuters.
Thanks to this agreement, Porsche will get access to high-performance batteries for its electric and hybrid sports cars.
The German automaker has also announced it would take a majority stake in Varta’s V4Drive Battery, used in the Porsche 911 Carrera GTS model.
“Varta and Porsche are already working closely together on the topic of high-performance battery cells. With the planned majority takeover of V4Drive, we aim to drive the company forward and would make an important contribution to keeping key technologies in Germany,” said Lutz Meschke, deputy chairman of the executive board and member of the executive board for finance and IT at Porsche AG, in a media release.
