BayWa, a Munich-based agricultural and building materials conglomerate, has reached an agreement with its major shareholders and creditor banks to address its significant debt burden.
The restructuring plan aims to stabilize the company by 2027, with a capital increase of 150 million euros. The specifics of this capital infusion are expected to be finalized by the end of March.
BayWa has indicated that the finalization of agreements regarding the extension of its substantial debt will likely extend until the end of April. In the interim, creditor banks have agreed to maintain a standstill on the existing debt obligations.
BayWa plans to divest a significant portion of its foreign holdings to alleviate its debt. The first step in this divestment strategy involves the sale of BayWa's stake in RWA Raiffeisen Ware Austria to the RWA cooperative. This transaction is set to be completed by the end of March.
BayWa is also looking to sell its interests in Cefetra and T&G Global. The divestment of BayWa's remaining shares in BayWa r.e. is expected to take until 2027.
The success of BayWa's restructuring efforts will have implications for the broader agricultural and building materials sectors. Investors and market analysts will be closely monitoring the outcomes of the divestment strategy and the company's ability to manage its debt effectively.