(Reuters) – Embattled German agricultural trading group BayWa said on Monday it would keep a majority ownership of renewable energy unit BayWa r.e. after an initial agreement with suitor Energy Infrastructure Partners fell apart.
“A final agreement on details of this concept could not be reached for economic reasons,” BayWa said.
The Munich-based trader of farming supplies and produce added it is now in talks with core banks of the company and its subsidiary as well as major shareholders to cover the capital and guarantee requirements of BayWa r.e. until the end of the company’s restructuring phase.
BayWa announced in February it struck an initial deal with Switzerland’s Energy Infrastructure Partners (EIP) for the Swiss firm to become the major shareholder of BayWa r.e., which still required approval of the EIP’s boards.The German group has been grappling with rising borrowing costs, forcing it to embark on a major restructuring, including job cuts.
“By implementing the alternative financing concept, BayWa AG would remain the majority shareholder of BayWa r.e. AG for the time being,” The firm added in statement.
(Reporting by Tristan Veyet in Gdansk)
