The auto supplier Leoni needs about 50 million euros and wants to tap the capital market for it. As the Nuremberg company announced ad hoc on Sunday, the issue of new shares or a convertible bond is being examined in order to redeem the hoped-for sum.
According to Leoni, the possible equity measure is part of “constructive, advanced discussions on the further financing of the Leoni Group by extending and adjusting the existing credit lines beyond 2022”. However, this is far from being firmly agreed: “It is also conceivable that an equity component will ultimately be dispensed with.”
Among other things, Leoni supplies cable harnesses and was in the Ukraine been hit hard where the company has two factories. In the first quarter, sales slipped by 6.9 percent to 1.26 billion euros compared to the same period last year.
Leoni has been struggling for years and only reported returning to the black a year ago. The ongoing supply bottlenecks, the steep increase in energy costs and the war are now causing the company problems again