German battery maker Varta eyes Porsche investment for battery unit
July 4 (Reuters) -German battery maker Varta VAR1.DE on Thursday said it is in talks with Porsche P911_p.DE over a potential investment in its large-format lithium-ion battery business, V4Drive.
The companies have signed a non-binding term sheet and are working on finalizing the details, Varta said, without disclosing any financial factors.
The deal, which is contingent on a successful due diligence review and shareholder approval, would see Varta's V4Drive business transferred to a subsidiary, with Porsche participating through a capital increase.
The potential investment comes after Varta cut its full-year revenue forecast for 2024 last month due to the declining demand in the energy storage market.
In April, the troubled battery manufacturer said it may not meet targets set under its restructuring plan and was exploring recapitalisation options. Under the plan Varta expected to return to "profitable growth" by the end of 2026.
Reporting by Surbhi Misra in Bengaluru; editing by Diane Craft
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