The German Association for the Protection of Securities (DSW) has called on the shareholders of the Franconian automotive supplier Leoni to resist the company’s planned restructuring concept.
The concept envisages that the value of the shareholding falls completely and the shareholders lose all the money they have invested in Leoni. Major shareholder Stefan Pierer is to continue to run the company on his own and assume about half of the liability totaling around 1.5 billion euros. Leoni should then be taken off the stock exchange. Most recently, the troubled Nuremberg automotive supplier had to dramatically correct the value of the company.
Leoni has been in crisis for a long time: DSW calls on shareholders to resist
It has been known for a long time that Leoni is in bad shape. It is also understandable that considerable cuts have to be made by investors. “The fact that the major shareholder alone takes over the helm here at the expense of the free shareholders and carries out a restructuring solely in his favor at the expense and without the opportunity for the other existing shareholders to participate is neither comprehensible nor the right way,” said DSW Managing Director Marc Tüngler.
Leoni has called its shareholders together for an extraordinary general meeting on June 2nd. DSW called on shareholders to join forces to speak with one voice.
Preview image: © Daniel Karmann/dpa/archive image
