German battery maker Varta on Sunday said it is discussing two restructuring scenarios that could potentially lead to luxury sportscar maker Porsche taking a stake in it.
Varta said in a statement that the two scenarios included one with potential new investors, among them existing Austrian majority shareholder Michael Tojner and Porsche, as well as one with financial creditors.
Varta said it had decided to notify the relevant courts of an overhaul in accordance with Germany's corporate stabilization and restructuring act, adding that without such a move the firm would have to incur losses that would consume its share capital.
Varta, which has a market value of 440 million euros ($479 million), said earlier this month it was in talks with Porsche over a potential investment that could result in the carmaker becoming a majority owner of Varta's V4Drive business.
Sunday's statement, meanwhile, could see Porsche take a direct stake in Varta itself.
Porsche said it could confirm that it was in negotiations with a view to acquire a majority stake in V4Drive via a possible capital increase.
"The prerequisite for this is a sound financial basis for Varta AG. Under certain circumstances, we could therefore imagine participating in a financial restructuring of Varta AG as a whole. Discussions on this are still ongoing," Porsche said in a statement.
Varta said in April it might not meet targets set under its restructuring plan and was exploring recapitalisation options that should help it return to "profitable growth" by the end of 2026.
Varta said it hoped to quickly reach a decision on which of the two scenarios would be implemented, adding they covered debt capital or a combination of debt and equity in a high double-digit million euro amount to fund restructuring measures.
Varta said both proposals would result in a reduction of the group's share capital to zero, which would result in existing shareholders, except Tojner, leaving without compensation as well as a delisting of its shares.
"In addition, a significant debt haircut is planned for certain creditor groups and the deferral of remaining claims," Varta said.
It said it was unlikely that either proposal would garner the necessary majority at a general meeting of shareholders, adding the proposed restructuring, if accepted by courts, would allow it to realise it without investor approval.
Latest Stories
-
Ghanaian defender Joseph Aidoo plays first competetive game since October 2023
2 mins -
Prices of petrol, diesel, LPG to decrease between 2% and 5% – IES
4 mins -
Keta Nursing Training College grateful to Bawumia for re-roofing College’s ripped auditorium
11 mins -
Akufo-Addo chops kenkey at Jamestown [Video]
20 mins -
Ibrahim Sadiq stars as AZ Alkmaar beat Heerenven in Eredivisie
35 mins -
Free SHS: Why I find President Akufo-Addo’s ‘send your wards to private’ SHS problematic
40 mins -
Kipyegon, Chebet and Fabbri break meeting records as Diamond League final concludes in Brussels
40 mins -
FBI investigating apparent assassination attempt on Trump in Florida
46 mins -
Acting is one of the most disappointing careers – Ama K. Abebrese
53 mins -
Baba Yara Ban: Okudzeto Ablakwa questions GHS85 million expenditure on stadium maintenance
60 mins -
Ghana ranked 6th in Africa with highest Cost of Living and Rent Index
1 hour -
Jackson 5 singer Tito Jackson dead at 70
1 hour -
Don’t abstain from 2024 polls; vote for me – Mahama to disappointed NPP members
1 hour -
T-bills auction: Government records marginal oversubscription; pays slightly more for 91-day bill
1 hour -
The Galamsey menace in Ghana: Urgent Call for NADMO to act Now
2 hours