Austrian entrepreneur Pierer takes over automotive supplier

Leoni

The major shareholder Pierer wants to become the sole owner.

(Photo: dpa)

Munich The Austrian entrepreneur Stefan Pierer wants to save the ailing car supplier Leoni and become its sole owner. Major shareholder Pierer is ready to provide Leoni with 150 million euros of fresh capital and to take over part of the bank debt so that the Nuremberg company can be debt-free, Leoni announced on Wednesday.

The other shareholders will get nothing in the course of the capital cut. The banks and promissory note creditors can hope to get some of the money back after the restructuring. Leoni would thus be saved until the end of 2026.

“From the point of view of the board of directors, this restructuring concept is the only remaining restructuring solution,” the statement said. Negotiations with Pierer and the creditors have progressed, and an agreement can be expected in the short term. Pierer has held a good 20 percent of Leoni so far.

More: Bailout for ailing auto parts supplier – Painful capital cut at Leoni

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