(Reuters) -Embattled German trading group BayWa has sold its grain and oilseed trading branch Cefetra to PGFO, a First Dutch company controlled by the entrepreneur Peter Goedvolk, for about 125
BayWa Divests Cefetra for €125 Million to Reduce Debt Burden
(Reuters) -Embattled German trading group BayWa has sold its grain and oilseed trading unit Cefetra to Dutch company PGFO for about 125 million euros ($143 million) as part of an effort to cut its debt burden, it said on Tuesday.
Baywa Group will get about 61 million euros more as part of Cefetra's refinancing, resulting in a total cash inflow of about 186 million euros.
Further, the deconsolidation of the Dutch unit will cut BayWa's bank liabilities by about 500 million euros.
Last week, the German agricultural supplies trader said its restructuring plan, including job cuts, was confirmed by a Munich court, after it has been struggling with rising borrowing costs.
BayWa said in May that around 300 affected creditors agreed to an extension of loans until the end of 2028, as well as a capital increase of up to 201.6 million euros.
The company is trying to reduce its debt by 4 billion euros, notably by selling most of its foreign assets by 2028.
Last month, Reuters had reported that BayWa had received at least two offers for Cefetra, which it acquired in 2012 for the same amount as its selling price.
($1 = 0.8750 euros)
(Reporting by Harshita Meenaktshi in Bengaluru; Editing by Alan Barona and Sahal Muhammed)
