Exclusive-Germany's BayWa targets $4.2 billion in proceeds from asset sales, presentation shows

By Alexander Hübner

MUNICH (Reuters) - Germany's BayWa is trying to raise 4 billion euros ($4.2 billion) by selling most of its foreign assets by 2027, according to a presentation seen by Reuters, as the stricken agricultural group seeks ways to lower its debt pile.

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.

BayWa plans to sell its Dutch grain and soy trading division Cefetra as well as a 50% stake in Austrian RWA in 2025, the presentation to employees showed, adding that a majority stake in New Zealand-based T&G Global was planned for 2026.

A sale of 51% of BayWa's solar and wind project division won't take place before 2027, the presentation showed, due to the currently muted demand for renewable assets.

Together, the asset sales should bring down BayWa's debt to around 1 billion euros from more than 5 billion euros currently, according to the presentation.

BayWa declined to comment on the plans, which have not been previously reported.

BayWa earlier unveiled plans to cut around 1,300 full-time positions out of almost 8,000 by the end of 2027, adding it would close 26 out of 400 locations.

On Saturday, the company had mapped out some restructuring steps, including a possible capital increase in 2025 that will have a volume of around 150 million euros, a person familiar with the matter said.

($1 = 0.9498 euros)

(Reporting by Alexander Huebner; Writing by Christoph Steitz;Editing by Elaine Hardcastle)