VARTA AG Announces Commercial Agreement on Restructuring Concept

Ellwangen, August 17, 2024 — VARTA AG has reached a commercial agreement on a restructuring concept with most syndicate loan lenders and certain promissory note lenders. This plan aims to reduce the company's debt significantly and inject fresh liquidity. New shareholders include MT InvestCo, controlled by the majority shareholder Dr. Michael Tojner, and an investment company of Dr. Ing. h.c. F. Porsche AG.

The restructuring will decrease VARTA's current debt of €485 million to approximately €200 million by the end of 2027. A new senior loan of €60 million will cover liquidity needs. An equity participation instrument will be provided to lenders involved in the new funding, with other lenders receiving a debtor warrant contingent on exceeding certain EBITDA figures.

The share capital of VARTA AG will be drastically reduced, resulting in the exit of current shareholders and a subsequent delisting of shares. Following this, MT InvestCo and Porsche will invest €60 million in cash and assets, resulting in a capital increase and new share issuance.

The restructuring may convert VARTA AG into a limited liability company. Pending approval from involved parties and authorities, the plan will be submitted to the Stuttgart Restructuring Court for further proceedings.