Varta's Restructuring Plan Gains Approval Despite Shareholder Opposition

The embattled battery maker moves closer to implementing a debt-reduction strategy that will eliminate its stockholders' equity and delist the company from the stock market.

Varta's restructuring plan, aimed at reducing its debt from nearly €500 million to €230 million, has been approved by most affected groups, excluding small shareholders.
The plan involves a complete write-down of Varta's share capital, resulting in the removal of existing shareholders without compensation and the company's delisting from the stock exchange.
New equity will be issued to Varta's majority owner Michael Tojner and Porsche, with each committing €30 million, while creditors will provide €60 million in loans.
Varta's financial troubles stem from overreliance on Apple, declining demand for lithium-ion batteries, global economic challenges, and management missteps, including costly investments and unprofitable ventures into electric vehicle batteries.
Despite ongoing legal challenges from shareholder groups, Varta's leadership expects the restructuring process to be finalized by January 2025, with plans to maintain its German workforce and focus on growth in energy storage and consumer goods markets.