EQS-News VARTA AG: VARTA AG plans capital increase and comprehensive restructuring concept

VARTA AG is in advanced discussions with the financing banks on far-reaching restructuring measures to stabilise the company financially and operationally. The restructuring concept, which has been developed in recent weeks within the framework of an IDW-S6 expert opinion, includes targeted measures to increase profitability and improve the financing structure. The proceeds of a targeted capital increase of 50 million euros are to be used for investments in important innovation fields of the company.

Following the challenges of 2022 triggered by the global crises, which most recently weighed on earnings, VARTA AG has held talks with its financing banks in recent months on the further restructuring and stabilisation of the company. An IDW-S6 expert opinion prepared by KPMG confirms VARTA AG's ability to restructure and the company’s clear growth prospects. The prerequisite is the group-wide, consistent reduction of the cost base in the areas of procurement, internal processes and personnel as well as a further diversification of the customer base and investments in growth areas. The restructuring concept is subject to the final approval of the responsible bodies of the banks.

As a first step, VARTA AG's Executive Board today agreed with the Supervisory Board on the implementation of a capital increase to strengthen VARTA AG's growth areas. The target is proceeds of 50 million euros. The new shares will originate from authorised capital and will be issued under exclusion of shareholders' subscription rights at a selling price not significantly below the market price of VARTA shares. Only VGG Beteiligungen SE, a wholly owned subsidiary of Montana Tech Components, will be admitted to subscribe for the new shares. Among other things, the company intends to use the proceeds to expand its existing and very well developing energy storage business. In addition, VARTA intends to secure growth in large-format lithium-ion cells, which are already being supplied to one customer. The implementation of the capital increase is secured by a subscription guarantee from Montana Tech Components, which is subject to a final agreement with the financing banks.