EQS-Adhoc

Leoni AG close to agreement on financial restructuring concept to secure financing - restructuring plan results in exit of existing shareholders

EQS-Ad-hoc: Leoni AG / Key word(s): Capital Reorganisation/Delisting Leoni AG close to agreement on financial restructuring concept to secure financing - restructuring plan results in exit of existing shareholders 29-March-2023 / 13:02 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

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Leoni AG close to agreement on financial restructuring concept to secure financing - restructuring plan results in exit of existing shareholders

Nuremberg, 29 March 2023 – Leoni AG (ISIN: DE0005408884 / WKN: 540888) announces that it is in advanced negotiations with its financing parties and Dipl.-Ing. Stefan Pierer as strategic investor on a financial restructuring concept and expects to reach an agreement shortly. The restructuring concept will substantially reduce the company's debt and provide fresh liquidity. In the view of the Executive Board of Leoni AG, this financial restructuring concept is the only remaining restructuring solution. Based on current planning, the implementation of the restructuring concept will secure the financing of Leoni AG until the end of 2026 and will be implemented based on the German Corporate Stabilization and Restructuring Act (“Unternehmensstabilisierungs- und -restrukturierungsgesetz”).

A company indirectly held by Dipl.-Ing. Stefan Pierer would, after a simplified capital reduction of Leoni AG to 0 euros, contribute 150 million euros by way of a cash capital increase with a subsequent contribution in kind in return for the issuance of new shares in Leoni AG. In addition, this company is to take over financial claims against Leoni AG in the amount of 708 million euros from its financing parties in return for a recovery instrument corresponding to an economic interest of 45%. These claims will be contributed to Leoni AG in the course of the capital increase by way of a contribution in kind. In this way, Leoni AG will be relieved of financial liabilities of 708 million euros and receive 150 million euros in new liquidity.