VARTA AG notified a StaRUG proceedings

In the past, the company has aggressively invested in promising business models and also borrowed capital for this purpose. However, the development of some of the business areas fell well short of expectations. As a result, earnings have recently not been sufficient to achieve a sustainable positive operating result that is commensurate with the current debt burden and financial resources. The restructuring gives the VARTA AG group the opportunity for a financial restart in order to become competitive again in the long term.

At the beginning of 2024, the VARTA AG recognised that the assumptions made in the existing restructuring plan, the agreed turnaround measures and the recommended corporate strategy were no longer appropriate for the VARTA Group's situation due to the changed macroeconomic circumstances. The cyberattack in February 2024 and the slump in market demand for energy storage systems further exacerbated the already tense financial situation. These circumstances made it necessary to update the restructuring plan drawn up in 2023.

StaRUG stands for the Act on the Stabilisation and Restructuring Framework for Companies, which came into force in Germany on 1 January 2021 and offers companies a quick and targeted restructuring of their financial liabilities without the need for insolvency proceedings.

With the help of a StaRUG procedure, the company's debt can be reduced to a level that corresponds to the company's expected future earning power. The advantage of the StaRUG procedure lies in its flexibility and efficiency, as the company retains the power of disposal, specific creditor groups can be involved in a targeted manner, certain majorities are sufficient for approval and a high degree of legal certainty is offered through court confirmation of the restructuring plan.

Shareholders will be represented as a group in the StaRUG proceedings.

A capital reduction to zero would mean that the current shareholders exit their position in the company without compensation and the shares of VARTA AG would no longer be listed on the stock exchange.

The capital reduction to zero would lead to the current shareholders exiting their position in the company without compensation and to the cancellation of the stock exchange listing of the shares of VARTA AG.

As part of the capital reduction to zero provided for in the restructuring plan and demanded by new investors, the stock exchange listing of VARTA AG will be terminated. This will take place after the conclusion of the StaRUG proceedings. When the StaRUG proceedings will be concluded depends on many factors in the course of the proceedings and can currently not be predicted.

A capital reduction to zero provided for in the restructuring plan will inevitably result in a delisting, i.e. the cancellation of VARTA AG's stock market listing.

It is no longer possible to maintain the stock exchange listing if the capital is reduced to zero.