Written by Andreas Fritz
Ellwangen, June 13, 2019 VARTA AG has successfully concluded its capital increase for the expansion of production capacities for lithium-ion batteries, which was announced yesterday. A total of 2,221,686 new shares were placed at a price of EUR 46.70 per share. Gross proceeds from the capital increase for the Company amount to approximately EUR 104 million.
Herbert Schein, Chief Executive Officer (CEO) of VARTA AG, commented: “We are delighted with the success of this capital increase. We see this as confirmation of our commitment to pursuing our profitable growth path”. Steffen Munz, Chief Financial Officer (CFO) of VARTA AG, added: “The capital increase was met with huge interest on the part of international investors. The shares were placed without a discount to the XETRA closing price of the previous trading day. Now we have secured the requisite funding to further accelerate the dynamic growth already seen in lithium-ion batteries.”
The new shares are fully entitled to dividends for the 2019 financial year. The new shares will carry the same rights as the existing shares. These shares shall be admitted to trading on the regulated market of the Frankfurt Stock Exchange, without a prospectus, with simultaneous admission to the sub-segment of the regulated market with additional post-admission obligations (Prime Standard). The first trading day for the new shares is expected to be June 14, 2019. Berenberg was Sole Global Coordinator and Sole Bookrunner for the offering of the new shares.
Gross proceeds from the capital increase will be used to finance an additional capacity expansion for rechargeable lithium-ion batteries for high-tech consumer products, and wireless premium headphones in particular. The announced expansion of production capacities to more than 80 million batteries per year in 2020 and well above 100 million batteries per year from 2021 will require an additional investment in the amount of approximately EUR 100 million. This is a consequence of unabated high customer demand in a market that is growing by more than 30% per annum.
Originally, the Company had planned to expand production capacities to over 60 million batteries from 2020 onwards.
About VARTA AG
VARTA AG, as the parent company of the Group, is active in the Microbatteries and Energy Storage Solutions business segments through its subsidiaries VARTA Microbattery GmbH and VARTA Storage GmbH. Today, VARTA Microbattery GmbH is already an innovation leader in the field of microbatteries, one of the market leaders for hearing aid batteries and is also striving for market leadership for lithium-ion batteries in the wearables sector by 2020, especially for hearables. VARTA Storage GmbH focuses on the design, system integration and assembly of stationary lithium-ion energy storage systems for households and commercial applications as well as on tailor-made battery storage systems for OEM customers. With five production and manufacturing facilities in Europe and Asia as well as sales centers in Asia, Europe and the USA, the operating subsidiaries of the VARTA AG Group are currently active in over 75 countries worldwide.
This publication constitutes neither an offer to sell nor a solicitation to buy shares of VARTA AG. No public offer of securities of VARTA AG is being made or intended.
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This document is not an offer of securities for sale in the United States. The shares of VARTA AG (the “Shares”) have not been registered and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States unless registered under the Securities Act or pursuant to an exemption from such registration. A public offering and/or a registration under the Securities Act are not intended.
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