The auto supplier Leoni is selling another part of its cable business.
The cable and wiring system specialist from Nuremberg announced on Monday the sale of its Business Group Automotive Cable Solutions, which bundles the business with special cables for cars, to the Thai cable specialist Stark Corporation.
The sale should flush more than 400 million euros into the coffers of the Franconian supplier.
Leoni had already divested itself of most of its industrial cable business last year.
"With the decision, we are strengthening our balance sheet, supporting the ongoing refinancing talks and driving our well-known strategic focus on the business with wiring systems," said Leoni CEO Aldo Kamper.
The sold division contributed 1.3 billion euros to Leoni's sales last year, and the enterprise value is estimated at 560 million euros.
So far, 3,300 people have been employed in the business area at ten locations in seven countries.
Hard restructuring course
Leoni got into trouble a few years ago after problems in the industry and had to take out government-backed loans during the corona pandemic.
In the course of the problems, Leoni had separated from several parts of the company with the aim of concentrating primarily on the core business with wiring systems.
Leoni employs around 100,000 people and generated sales of 5.1 billion euros in 2021.
The company only announced on Sunday evening that it was looking for ways to raise around 50 million euros with its creditors.
The issue of new shares or a convertible bond will be examined in order to redeem the hoped-for sum.