EQS-Ad-hoc: Leoni AG / Key word(s): Financing/Capital Reorganisation Leoni AG: Refinancing requires substantial contributions from equity and debt investors and is expected to largely dilute shareholders Nuremberg, 3 February 2023 – As already announced on 13 December 2022, Leoni AG (ISIN: DE0005408884 / WKN: 540888) must negotiate a new financing solution with its syndicate banks and the borrower's note holders (“financing parties”) after STARK Corporation surprisingly refused to close the SPA on the sale of the Business Group Automotive Cable Solutions concluded in May 2022. The ongoing negotiations suggest that there will be no solution without a capital cut by the shareholders. The rationale is that all financing parties must also make far-reaching concessions in order to enable the long-term continuation of Leoni AG by converting financial liabilities into equity (debt-to-equity swap) or into other instruments – such as subordinated debtor warrants – in order to reduce Leoni Group's debt. From today's perspective, it can be assumed that a prerequisite for the refinancing solution will be a capital reduction with a subsequent capital increase (whereby the exact form is still to be determined). If these measures are implemented, the current shareholders' existing holdings will be largely diluted. Leoni AG has entered into talks with its largest shareholder, the Pierer Group. The latter has declared that, subject to certain conditions, it is willing to make a significant contribution to the restructuring within the context of the equity injection.
Contact for journalists
03-Feb-2023 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. |
Language: | English |
Company: | Leoni AG |
Marienstraße 7 | |
90402 Nuremberg | |
Germany | |
Phone: | +49 (0)911 20 23-234 |
Fax: | +49 (0)911 20 23-382 |
E-mail: | veroeffentlichung@leoni.com |
Internet: | www.leoni.com |
ISIN: | DE0005408884 |
WKN: | 540888 |
Listed: | Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart; Regulated Unofficial Market in Tradegate Exchange; Madrid |
EQS News ID: | 1551469 |
End of Announcement | EQS News Service |
|
1551469 03-Feb-2023 CET/CEST
The information presented here has been provided by our content partner EQS-Group. The originator of the news is the respective issuer, the company relating to the news, a publication service provider (press or information agency) which uses the distribution service of EQS to transmit company news to shareholders, investors, investors or interested parties. The original publications and other company-relevant information can be found at eqs-news.com.
The information you can access does not constitute investment advice. The presentation of our cooperation partners, where the implementation of investment decisions would be possible depending on the individual risk profile, is solely at the discretion of the person using the service. We only present companies of which we are convinced that the range of services and customer service will satisfy discerning investors.
If you are considering leverage products, familiarise yourself with the typical characteristics of the financial instruments beforehand. Take the time to determine the risk content of the planned investment before making an investment decision. Bear in mind that a total loss cannot be ruled out with leverage products.
For newcomers to the subject, we offer various options in both the training and the tools section, through which you can train theoretical knowledge and practical experience and thus improve your skills. The offer ranges from participation in webinars to personal mentoring. The range is continuously being expanded.
1 Lab features are usually functionalities that emerge from the think tank of the investor community. In the early stages, these are experimental functionalities whose development process is largely determined by use and the resulting feedback from the community. When integrating external services or functionalities, the functionality can only be guaranteed to the extent that the individual process elements, such as interfaces, interact with each other.