Germany's BayWa targets $4.2 bln in proceeds from asset sales, presentation shows

Baywa AG

04/12/2024 18:26

By Alexander Hübner
       MUNICH, Dec 4 (Reuters) - Germany's BayWa  BYWGnx.DE  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  TGG.NZ  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)
 ((christoph.steitz@thomsonreuters.com; +49 30 220 133 647;))