Leoni–STARK Deal Falls Apart
Leoni AG announced that its previously agreed sale of the Business Group Automotive Cable Solutions to STARK Corporation Public Company Limited will not close as planned. The German cable and wiring systems specialist said that STARK “unexpectedly demanded very significant amendments to the purchase agreement” shortly before closing.
Despite Leoni’s willingness to compromise, STARK refused the revised terms and confirmed that it will not proceed with the transaction. For company background and investor information, visit Leoni and STARK Corporation.
Leoni Defends Its Position and Eyes Legal Options
Leoni views STARK’s actions as a breach of the original contract and plans to “take all measures to enforce its rights against STARK.” The company emphasized that the sale formed a key pillar of its financial strategy through the end of 2025.
Leoni has already signed comprehensive refinancing documentation with its syndicate banks and borrower’s note holders, based on an agreement in principle reached in 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, Leoni’s refinancing plan cannot move forward for now.
Refinancing Plan Faces Delay
The rejected transaction directly affects Leoni’s 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 Leoni’s 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.
STARK’s Industrial Focus
Leoni’s release did not disclose the specific contractual changes STARK requested. STARK, a Thailand‑based industrial holding company, focuses on investments in manufacturing and services, especially in wire and cable production through subsidiaries such as Phelps Dodge International (Thailand) 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 to Wire Journal International’s request for comment regarding the failed deal.
