News Agribusiness
Struggling BayWa saved for the coming weeks
The Bavarian agribusiness concern BayWa, which is facing major financial problems, has been saved at least for the coming weeks. With the help of mainly the largest shareholders of the company, approximately €550 million has been raised, allowing them to move forward at least until the end of September, as announced by the company today. Part of the solutions also involve converting grain stocks into cash.
The amount is divided into several parts and is quite complex. The largest portion, €272 million, is provided by two banks, namely Bayerische Raiffeisen Beteiligungs AG (BRB) and the Austrian Raiffeisen Agrar Invest (RAIG). Together, they are major shareholders of BayWa through BRB holding with a 34% stake. In addition, €125 million comes from the major shareholders in the form of subordinated loans, of which €75 million had already been disbursed earlier.
BayWa itself has also divested its 45% stake in the BRB holding to the parent company BRB AG with the help of a bank from Frankfurt. This transaction yields €120 million. Furthermore, another interest in another subsidiary has been divested, bringing in €10 million. Lastly, BayWa has also generated cash by selling grain stocks worth €20 million at current market prices to shareholder Raiffeisen Agrar Invest and its subsidiaries.
With the money, BayWa can move forward until the end of September. The Board of Directors expects to have a plan by the end of September that will secure the future in the long term. Based on discussions with banks, shareholders, and other stakeholders, there is confidence in a positive outcome. BayWa CEO Marcu Pöllinger states that they will do everything to restore trust and once again become the reliable partner they always were.
In recent months, BayWa encountered problems due to a combination of causes, mainly centered around the company's energy division. The company is active in the Netherlands through its subsidiaries Cefetra and Abemec.
