Proprietor transfers control of cable-car expertise firm, Leoni, to Chinese entities
In 2022, the German cable harness company Leoni, renowned for its work in the automotive industry, was saved from bankruptcy through insolvency proceedings. The new major shareholder, Luxshare, a Chinese electronics supplier, nabbed 50.1% of Leoni's shares, as well as the entire cable division. Leoni's CEO, Stefan Pierer, described Luxshare as the ideal partner to ensure Leoni's long-term success. The total purchase price was revealed to be 320 million euros by Luxshare.
Luxshare, based in Shenzhen, manufactures items such as computer cables and components for brands like Apple. Their expertise in fields like connectors and electronics can now be leveraged by Leoni to offer more integrated solutions.
The use of modular cable harnesses has been on the rise in the automotive industry, especially for electric vehicles. Luxshare's CEO, Grace Wang, claimed that this collaboration with Leoni is a significant leap towards becoming a global leader in the automotive industry.
Just before the year's end in 2022, Leoni was on the brink of selling its cable division, but the deal fell through. The company was heavily in debt and sought protection from insolvency through a pre-insolvency restructuring procedure. In this process, Pierer became the sole owner. This was the first instance where the Company Reorganization and Restructuring Act (StaRUG) was utilized in a publicly traded company. As a result, the shareholders suffered financial losses.
The economic difficulties faced by Leoni had threatened its survival in the automotive industry, but the insolvency proceedings and the subsequent investment from Luxshare helped to revitalize the economy of the company.
With Luxshare's expertise in electronics and connectors, Leoni is well positioned to offer more advanced and integrated solutions in the growing market for modular cable harnesses in the automotive industry, particularly for electric vehicles, contributing to the overall growth of the economy.
