EQS-Adhoc: Leoni AG: Refinancing requires substantial contributions from equity and debt investors and is expected to largely dilute shareholders

Leoni AG: Refinancing requires substantial contributions from equity and debt investors and is expected to largely dilute shareholders

Nuremberg, 3 February 2023 – As already announced on 13 December  2022, Leoni AG (ISIN: DE0005408884 / WKN: 540888) must negotiate a new financing solution with its syndicate banks and the borrower's note holders (“financing parties”) after STARK Corporation surprisingly refused to close the SPA on the sale of the Business Group Automotive Cable Solutions concluded in May 2022.

The ongoing negotiations suggest that there will be no solution without a capital cut by the shareholders. The rationale is that all financing parties must also make far-reaching concessions in order to enable the long-term continuation of Leoni AG by converting financial liabilities into equity (debt-to-equity swap) or into other instruments – such as subordinated debtor warrants – in order to reduce Leoni Group's debt.

From today's perspective, it can be assumed that a prerequisite for the refinancing solution will be a capital reduction with a subsequent capital increase (whereby the exact form is still to be determined). If these measures are implemented, the current shareholders' existing holdings will be largely diluted.

Leoni AG has entered into talks with its largest shareholder, the Pierer Group. The latter has declared that, subject to certain conditions, it is willing to make a significant contribution to the restructuring within the context of the equity injection.

Contact for journalists
LEONI AG
Gregor le Claire
Corporate Press Officer
Phone:  +49 911 2023-226
E-mail:  gregor.leclaire@leoni.com

Contact for investors
LEONI AG
Rolf Becker
Senior Manager Investor Relations
Phone:  +49 911 2023-134
E-mail:  rolf.becker@leoni.com

1551469  03-Feb-2023 CET/CEST