Cooperatives want to help - Relief in sight for the struggling Baywa
For the billion-dollar indebted Baywa, quick help is in sight. The largest shareholder, the Participation Company of the Bavarian People's and Raiffeisen Banks, intends to support the traditional company. "We will show solidarity, we will constructively go this way together," said Gregor Scheller, outgoing chairman of the GVB (German Cooperative Association in Bavaria), in Munich. According to previous reports from financial news service "Platow Brief", the aid plan is expected to be announced shortly. Scheller did not mention the financial volume or other details.
The company, which emerged from the cooperative movement, has short-term and long-term debts of approximately 5.6 billion Euro with its around 24,000 employees. Due to the rapid increase in interest rates, the financial burden of the company has tripled from 2021 to 2023 to 362 million Euro. Ten days ago, the corporation announced in a mandatory filing for the stock exchange its "tight" financial situation and the appointment of a restructuring expert. This not only caused concern in the financial sector, but also among those affected: The Baywa is of considerable importance for food supply in South Germany. The company is not only a supplier of seed, fertilizer, and agricultural machinery, but also buys the harvest from many farmers. In addition, many farmers are small shareholders of the company.
Directly involved in Baywa is not the Cooperative Association, but the Bavarian Raiffeisen Holding (BRB), a holding company that holds about 34% of the Mixed Corporation's shares. According to Scheller's words, there was an agreement at a recently convened annual meeting to help Baywa. "The Bavarian People's and Raiffeisen Banks and the BRB, they will go this way, and I am very, very grateful as the supervisory board chairman of Baywa."
At the ceremony for the introduction of the new GVB (German Cooperative Association in Bavaria) President Stefan Mueller, Baywa Board Chairman Marcus Poellinger was present. Baywa celebrated its centenary in 2023 with a net loss of 93 million Euro. In the first quarter, the Baywa slipped even deeper into the red with a minus of 108 million Euro. Causes were not only the high interest burden but also the currently poor-performing businesses.
- Baywa, currently burdened with a billion-dollar debt, finds solace in the participation of Raiffeisen, a key shareholder based in Bavaria, Germany.
- The financial burden of Baywa, which has its roots in the cooperative movement in Bavaria, has tripled due to the rise in interest rates, reaching a substantial 362 million Euro.
- In response to the challenging financial situation of Baywa, the Bavarian People's and Raiffeisen Banks, along with the Bavarian Raiffeisen Holding (BRB), have agreed to offer assistance.
- Based in Munich, the Participation Company of the Bavarian People's and Raiffeisen Banks aims to support Baywa, a company of significant importance to the food supply in South Germany, which deals in agriculture, seed, fertilizer, and agricultural machinery.
- Amidst Baywa's financial troubles, the company announced a tight financial situation and appointed a restructuring expert, causing concern not just in the financial sector but also among its small shareholder farmers.
- With the restructuring plans expected to be announced shortly, Baywa, a century-old company celebrating its centenary in 2023, hopes to overcome its recent unprofitable periods in the Energy sector.
