International law firm Clifford Chance advises Dipl. Ing. Stefan Pierer and the Pierer Group on an ongoing transaction that will result in Stefan Pierer indirectly taking over 100% of the publicly listed LEONI AG. The signing of the definitive and binding transaction documents has been announced by LEONI through an ad-hoc announcement on Monday, 3 April 2023.
LEONI is an internationally active automotive group with a 2022 revenue of more than €5 billion. It is a critical Tier 1 supplier to many global OEMs and part of the global automotive supplier infrastructure. Following the aborted sale of BG AM last year, a division of LEONI Group, the Pierer Group has engaged with all key stakeholders and has agreed, through a binding definitive agreement with the LEONI Group’s lenders and LEONI to use a restructuring plan under the German Corporate Stabilization and Restructuring Act (“Unternehmensstabilisierungs- und -restrukturierungsgesetz” – so-called StaRUG) to contribute €150 million of new capital to LEONI in exchange for 100% of its equity. At the same time, the key lenders of LEONI will transfer claims worth €708 million to one of Stefan Pierer’s 100% controlled entities in exchange for a profit participation note. Pierer will then contribute these claims to LEONI in addition to the €150 million new capital resulting in a significant deleveraging of LEONI.
This restructuring is the first of this magnitude to be implemented on the basis of the StaRUG in Germany. The transaction is subject to antitrust approvals, foreign direct investment approvals, the filing and implementation of the StaRUG plan and certain other steps.
Stefan Pierer currently indirectly holds approx. 20% of the shares in LEONI.
The core Clifford Chance team is being led by partner Stefan Sax (Restructuring, Frankfurt) who has been supported by partners Christian Vogel and Dominik HeĂź (both Corporate, DĂĽsseldorf), Marc Besen (Antitrust, DĂĽsseldorf/Brussels), Bettina Steinhauer (Global Financial Markets), George Hacket (Capital Markets) and Olaf Mertgen (Tax, all Frankfurt).
The core Clifford Chance partners have been supported by counsels Axel Wittmann (Capital Markets, Frankfurt) and Harald Amer (Restructuring, Munich), senior associates Diana Schoch (Restructuring, Frankfurt), Christian Cranmore (Global Financial Markets, Munich) and Nico Köhler (Capital Markets, Frankfurt) as well as associate Konstantin Kirchner (Restructuring, Frankfurt), senior associates Steffen Waadt (Tax, Frankfurt), Anne Filzmoser, Julius Schradin and Johannes Lüer (all Antitrust, Düsseldorf).
