BayWa Bids Adieu to RWA: Selling a 176 Million Euro Stake in Raiffeisen Ware Austria AG
Austrian Commercial and Agricultural Sector to be Led by Baywa
Hey there! Let's talk about BayWa, the Munich-based agricultural conglomerate that's been undergoing some major changes. After announcements of job cuts and restructuring in Germany, BayWa is taking the first steps to dismantle its network of participations, starting with its relationship with Austrian agricultural and commodity cooperatives.
This move could potentially lead to the full dissolution of BayWa's cross-participations with partners from Austria, reshaping the shareholder structure and composition of the BayWa board.
According to recent news, BayWa is offloading its 47.5% stake in RWA Raiffeisen Ware Austria AG to a subsidiary of the cooperative RWA Raiffeisen Ware Austria Handel and Asset Management eGen, a company that already holds a 50% stake in RWA. The selling price for the transaction? A cool 176 million euros.
Of this amount, 26 million euros will be used to settle part of a loan liability to RWA. BayWa's shares have shown a positive response in Xetra trading, with a temporary gain of over 20% shortly after the announcement. However, it's been a rollercoaster ride for the former SDax member. A year ago, the share was trading above 30 euros before the crisis hit.
This strategic alliance between the two commodity organizations, in place for 25 years, is now dissolving. The cooperation between BayWa and RWA was reportedly devoid of convincing synergies. The buyback of BayWa's stake in RWA is a significant undertaking for the Austrians, given their own operational struggles and the debt BayWa owes to certain Austrian Raiffeisen banks. BayWa's financial debt mountain currently stands at a hefty 5.4 billion euros.
The Vienna-based RWA sister unit Raiffeisen Agrar Invest AG remains the second-largest individual shareholder of BayWa with 28.1%. The largest shareholder is a participation vehicle of the cooperative primary banks in Bavaria with a stake of 33.8%. Last year, Reinhard Wolf, long-standing CEO of RWA and a member of the BayWa board since 2013, stepped down from his position.
As for BayWa, there have been changes in management, with Marcus Pöllinger stepping down as CEO in October after just 19 months in office. By the end of March next year, the long-serving CFO Andreas Helber will depart the company. Since early November, a restructuring team, appointed by the creditor banks and the cooperative owners of the Free State, has been overseeing the company's operations.
In an attempt to boost its equity capital, BayWa plans to raise around 150 million euros by issuing new shares with subscription rights by 2025. This move is aimed at addressing the high losses that have eroded BayWa's substance. The restructuring expert Michael Baur, from Alix Partners, is targeting completion of the company's restructuring by the end of 2027, which could potentially include the sale of other BayWa participations like the struggling solar and wind power plant subsidiary, BayWa r.e., and the New Zealand apple orchard operator, Turners & Growers.
There ya have it, folks! A brief update on BayWa, its strategic decisions, and ongoing restructuring efforts. Stay tuned for more updates from the world of business! 🎉🎉🎉
- BayWa's restructuring efforts have led to the sale of its 47.5% stake in RWA Raiffeisen Ware Austria AG to a subsidiary of the cooperative RWA Raiffeisen Ware Austria Handel and Asset Management eGen for a total of 176 million euros.
- The RWA stake sale is a significant factor in BayWa's industry-wide restructuring, potentially reshaping the shareholder structure and composition of the BayWa board.
- The financial industry is closely watching BayWa's business moves, with the agricultural conglomerate aiming to raise around 150 million euros by issuing new shares with subscription rights by 2025 to boost its equity capital.
- The restructuring expert Michael Baur, from Alix Partners, targets completion of BayWa's restructuring by the end of 2027, which could include the sale of other participating assets like the struggling solar and wind power plant subsidiary, BayWa r.e., and the New Zealand apple orchard operator, Turners & Growers.
