FRANKFURT (Reuters) - German battery maker Varta ( VARGF ) said on Saturday it had reached a restructuring agreement with its creditors, bringing on sports car manufacturer Porsche to save the ailing business.

Varta's ( VARGF ) debt will be reduced from 485 million euros ($534.86 million) to an initial 200 million euros, the company said.

Lengthy negotiations between major shareholder Michael Tojner, creditors and Porsche led to a compromise to relieve Varta ( VARGF ) of debt and provide it with fresh capital.

Tojner and Porsche will become the new owners of Varta ( VARGF ) and will provide a capital injection of 60 million euros.

A further 60 million euros will come from the creditors as senior secured loans.

A third investor could come on board later.

"We are in advanced discussions with other investors who would like to join us," Varta ( VARGF ) Chief Executive Michael Ostermann told Reuters.

($1 = 0.9068 euros)