Posted By Global Banking and Finance Review
Posted on December 27, 2024
(Reuters) - Germany's BayWa said on Friday that it has reached a restructuring agreement, set to last until 2027, with its major shareholders and financiers.
Under the agreement, a capital increase with a volume of around 150 million euros ($156.41 million) will be implemented in the first quarter of 2025.
The Munich-based trader of farming supplies and produce has been grappling with rising borrowing costs, forcing it to embark on a major restructuring, including job cuts, after racking up a consolidated nine-month net loss of 640.8 million euros.
The restructuring plan includes shedding around 1,300 full-time positions out of almost 8,000 by the end of 2027, and BayWa intends to close 26 out of 400 locations.
The firm also revealed plans to sell its stake in Austria's RWA for 176 million euros via its subsidiary, which is expected to be completed by the first quarter of 2025.
Earlier this month, Reuters reported that the group is trying to raise 4 billion euros by selling most of its foreign assets by 2027. It also plans to sell a majority stake in New Zealand-based T&G Global in 2026.
The legally binding conclusion and entry into force of the restructuring agreement are expected by the end of April 2025 at the latest, the statement added.
($1 = 0.9590 euros)
(Reporting by Urvi Dugar; Editing by Alan Barona)
