Saying Goodbye to a Long-Time Partner: BayWa Sells 47.5% Stake in RWA for €176 Million
Austrian Commercial and Agricultural Sector Braced for Baywa's Entry
Hey there! Check out this scoop about BayWa, the crisis-stricken agri-trade conglomerate based in Munich. They're making some significant moves as part of their restructuring, and it's all going down in Germany.
After announcing job cuts totaling 1,300 in the country, BayWa is selling its 47.5% stake in RWA Raiffeisen Ware Austria AG—a warehouse company based in Lower Austria's Korneuburg, near Vienna—to a subsidiary of the cooperative RWA Raiffeisen Ware Austria Handel and Asset Management eGen. The Bavarians are getting €176 million for the deal, with €26 million set aside to repay part of a loan liability to RWA.
Investors are hoping this move will bring some much-needed positivity, as BayWa's share price has taken a hit lately. The stock briefly jumped over 20% after the news broke, offering a bit of a ray of sunlight for the former SDax member. But let's not forget, back in the day, the share price was trading above €30 before the crisis hit.
The transaction signals the end of a 25-year alliance between the two commodity organizations, and there's speculation that the relationship may have run its course. With both parties now facing operational challenges, this is a tough time for the commodity and credit cooperatives across Austria's border.
Rumor has it that BayWa owes around €200 million to several Austrian financial institutions, adding to the debt mountain that stood at €5.4 billion for the company. The CEO, Marcus Pöllinger, was already forced to resign after just 19 months in office in October, and the CFO, Andreas Helber, is set to leave by the end of March 2026. Since November, the restructuring board overseen by creditor banks and cooperative owners in Bavaria has been running the show.
BayWa is considering a €150 million capital increase to help shore up its finances. Major shareholders are said to be on board for securing this volume, but details about the debt restructuring remain hush-hush. As part of the company's restructuring, BayWa aims to complete the process by the end of 2027, with potential sales of subsidiaries such as BayWa r.e. (with a 51% stake) and Turners & Growers on the table.
Stay tuned for more updates as this story unfolds! The restructuring plan will be submitted to the Munich Local Court following consultations with creditors and shareholders, with a key meeting scheduled for May 15, 2025, at Paulaner am Nockherberg in Munich. Dr. Hubert Ampferl, the appointed restructuring officer, will lead the proceedings.
This unusual restructuring phase for BayWa is closely tied to Germany’s StaRUG framework. The updated financing concept, negotiated with core banks and major shareholders, extends through 2028. While specific asset sales haven't been announced, the focus is on finalizing the restructuring plan, which will involve creditor voting and court validation under § 85 StaRUG.
Reference list:
- Financial Times
- Der Tagesspiegel
- Reuters
- Süddeutsche Zeitung
- Bloomberg
- BayWa, a crisis-stricken agri-trade conglomerate, is undertaking restructuring measures, which includes the sale of its 47.5% stake in RWA for €176 million to the cooperative RWA Raiffeisen Ware Austria Handel and Asset Management eGen.
- The move by BayWa is seen as a possibility to improve its financial status, as the company's share price has been affected negatively.
- The transaction signifies the end of a 25-year alliance between BayWa and RWA, with speculation that the relationship may have reached its conclusion.
- BayWa is currently facing operational challenges, and rumors suggest that the company owes around €200 million to several Austrian financial institutions, adding to its existing debt of €5.4 billion.
