Leoni Takeover Deal to Include Payout for Lenders, CEO Says
- Majority of stake sale proceeds to go to creditor banks
- Luxshare tie-up helps boost product offering, footprint
A Leoni plant in Serbia.
Photographer: Oliver Bunic/BloombergThis article is for subscribers only.
Bank lenders who suffered heavy write-downs when German auto supplier Leoni AG was restructured last year are set to receive a payout if a takeover deal with Chinese supplier Luxshare goes through.
The vast majority of the €205 million ($221 million) proceeds from the sale of a 50.1% share in the company are set to be channeled to lender banks, Chief Executive Officer Klaus Rinnerberger said in an interview. Luxshare will also buy Leoni’s cables business for €320 million, with the proceeds going toward reducing debt.