Varta Shares Jump on Porsche's Potential Investment in Battery Unit
By Helena Smolak
Varta shares soared following luxury carmaker Porsche's interest in acquiring a majority stake in the troubled battery maker's lithium-ion batteries subsidiary.
At 0736 GMT, shares of Varta traded 21% higher at EUR10.80. The stock has lost 48% year to date.
The German battery manufacturer said late Thursday that both companies entered into a nonbinding term sheet and are in the first phase of agreeing on the documentation for such a transaction, subject to approvals. Varta didn't disclose financial details.
The move comes after Varta cut its revenue forecast for fiscal 2024 amid significant deterioration in the energy-storage systems market.
Write to Helena Smolak at helena.smolak@wsj.com
(END) Dow Jones Newswires
July 05, 2024 04:10 ET (08:10 GMT)
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