LeoniโSTARK Deal Falls Apart
Leoni AGย announced that its previously agreed sale of theย Business Group Automotive Cable Solutionsย toย STARK Corporation Public Company Limitedย will not close as planned. The German cable and wiring systems specialist said that STARK โunexpectedly demanded very significant amendments to the purchase agreementโ shortly before closing.
Despite Leoniโs willingness to compromise, STARK refused the revised terms and confirmed that it will not proceed with the transaction. For company background and investor information, visitย Leoniย andย STARK Corporation.
Leoni Defends Its Position and Eyes Legal Options
Leoni views STARKโs actions as a breach of the original contract and plans to โtake all measures to enforce its rights against STARK.โ The company emphasized that the sale formed a key pillar of its financial strategy through the end ofย 2025.
Leoni has already signed comprehensive refinancing documentation with itsย syndicate banksย andย borrowerโs note holders, based on an agreement in principle reached inย July 2022. However, the plan relies on using proceeds from the Automotive Cable Solutions sale to partially repay financial liabilities. Because STARK will not close the deal, Leoniโs refinancing plan cannot move forward for now.
Refinancing Plan Faces Delay
The rejected transaction directly affects Leoniโs ability to implement its refinancing concept, which was designed to secure funding for the group until the end of 2025. Without the expected sale proceeds, Leoni must reassess its options with its lending partners.
According to Leoniโs previous disclosures, the company has already worked with its banks to extend certain credit facilities and will now discuss suitable adjustments to the refinancing plan.
STARKโs Industrial Focus
Leoniโs release did not disclose the specific contractual changes STARK requested. STARK, a Thailandโbased industrial holding company, focuses on investments in manufacturing and services, especially inย wire and cableย production through subsidiaries such asย Phelps Dodge International (Thailand)ย and other regional cable manufacturers.
STARK went public in 2019 and mainly operates in the electrical wire, cable, and related services sector in Thailand and Vietnam. It did not respond toย Wire Journal Internationalโsย request for comment regarding the failed deal.
