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BayWa Warns r.e. Problems Threaten Restructuring, Begins Talks With Banks

The expected €1.8 billion from a planned 2028 sale now looks unrealistic, triggering a reassessment of the deleveraging plan.

Overview

  • BayWa disclosed that deteriorating conditions at BayWa r.e. could cause material deviations from its business plan.
  • The board has opened precautionary discussions with key financing partners and major shareholders to safeguard refinancing at the end of the restructuring period.
  • The company cautioned that its 2025 annual report, previously targeted by April 30, may be postponed because BayWa r.e. has not provided figures.
  • BayWa cited weaker renewables markets in the United States and Europe, including the removal of U.S. tax credits under President Trump, as pressures on r.e.’s valuation.
  • The group remains highly leveraged after years of expansion, reported a €1.6 billion loss in 2024, and still owns 51% of BayWa r.e., with a planned stake sale to EIP having failed.