Leoni AG: STARK Corporation refuses to perform the Closing of the sale of BG AM; refinancing plan cannot be implemented for the time being; credit facilities becoming due to be temporarily extended
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EQS-Ad-hoc: Leoni AG / Key word(s): Mergers & Acquisitions/Financing
Leoni AG: STARK Corporation refuses to perform the Closing of the sale of the Business Group Automotive Cable Solutions; refinancing plan cannot be implemented for the time being; credit facilities becoming due to be temporarily extended
Nuremberg, 13 December 2022 – Leoni AG (ISIN: DE0005408884 / WKN: 540888) informs that all closing conditions for the closing of the sale and purchase agreement entered on 23 May 2022 with STARK Corporation Public Company Limited (STARK) on the sale of the Business Group Automotive Cable Solutions (BG AM) have been timely fulfilled and that the Closing was scheduled to occur shortly. However, the buyer STARK has today unexpectedly demanded very significant amendments to the purchase agreement. Despite willingness to compromise on the side of Leoni, STARK refuses to agree and will not perform the Closing. As no grounds for non-performance of the Closing exist, STARK is in Leoni's view acting in breach of the contract. Leoni will take all measures to enforce its rights against STARK. As reported, the transaction is linked to the refinancing plan, which is the basis for the financing of the Leoni Group until the end of 2025. For this purpose, Leoni has already signed a comprehensive contractual documentation of the refinancing plan with its syndicate banks and borrower's note holders on the basis of the agreement in principle reached in July 2022. An essential prerequisite for its implementation, however, is a partial repayment of financial liabilities with proceeds from the BG AM disposal. As a result of the non-performance of the contract by STARK, the refinancing plan cannot be implemented for the time being. The syndicate banks have already declared (subject to customary approval processes) that they will temporarily extend the credit facilities maturing on 31 December 2022. Leoni will enter into discussions with the syndicate banks on suitable amendments to the refinancing plan. Contact for journalists LEONI AG Gregor le Claire Corporate Press Officer Phone: +49 911 2023-226 E-mail: gregor.leclaire@leoni.com Contact for investors LEONI AG Rolf Becker Senior Manager Investor Relations Phone: +49 911 2023-134 E-mail: rolf.becker@leoni.com
13-Dec-2022 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: | 1511753 |
| End of Announcement | EQS News Service |
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1511753 13-Dec-2022 CET/CEST
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