Varta takeover approved as court rejects objections

The restructuring plan for the ailing battery manufacturer Varta has been finalised: Porsche and Michael Tojner are investing 60 million euros and taking over the company, while the existing Varta shareholders are being forced out. The Stuttgart Regional Court has now dismissed all appeals against this plan.

The Federal Cartel Office had previously authorised Porsche’s plans to acquire a stake in Varta. For Varta, a viable solution for the future has thus been in place for several months, after the company had previously overstretched itself with its expansion and got into difficulties. To reorganise the ownership structure, the Varta Management Board took advantage of the StaRUG Restructuring Act, which allows owners to be forced out. The shares of the previous Varta shareholders will become worthless in the course of the transaction.

Varta describes this process as follows: “[…] the restructuring plan provides for a simplified decrease of the Company’s share capital to € 0 as part of the financial restructuring. This will result in the exit of the Company’s current shareholders without compensation and the delisting of the Company’s shares.” This measure in combination with a haircut and a parallel increase in funds will “bring about sustainable financing of the company and make it fit for the future.”

In October, the ailing company had already received a bridge loan and at the same time agreed on a reorganisation concept with lenders and promissory note creditors as well as with the major Austrian shareholder Michael Tojner and Porsche. As part of this concept, Porsche and Tojner will each invest 30 million euros in the main company, which will also be relieved of debt through a haircut. As part of the restructuring, Porsche is taking over 70 per cent of Varta’s battery subsidiary V4Drive.

According to Varta, the restructuring plan is now legally binding. The Stuttgart Regional Court has dismissed complaints received regarding the restructuring steps as inadmissible and will not allow any new complaints.

handelsblatt.com (in German), varta-ag.com (PDF)

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