T&G Global’s majority German owner agrees refinancing plan
Monday, 10 February 2025
The German majority owner of local horticultural firm T&G Global has gone to court to get a credit restructuring plan approved and avoid insolvency ‒ and an associated reorganisation plan means it will likely be looking for a buyer for T&G Global soon.
Germany’s largest agricultural and building materials multinational, BayWa, which owns almost 74% of New Zealand’s T&G Global, reached agreement with most of its creditors on a credit restructuring roadmap out until 2027. The roadmap concerns financing, but will also hinge on the company selling off many of its international holdings, including T&G, and reducing staff by as much as 40% to pay off billions in debt.
To avoid insolvency, BayWa initiated restructuring proceedings in a Munich Court under a German law called StaRUG, which allows companies to press ahead with refinancing and restructuring as long as 75% of shareholders agree. BayWa had 95% acceptance of the plan, although a minority of shareholders had withheld their approval, fearing their shareholdings would be diluted.
BayWa said neither shareholders nor operations would be affected by their financing plans. Nevertheless, its share price fell by a third on news that the restructuring proceedings would be initiated.
The company said the presentation of its full-year results at the end of March would be delayed as a result of the new plan, while its annual general meeting may also be postponed.
The 101-year-old Munich-based multinational reported debts of almost €5.3 billion (NZ$9.7 billion) at the end of the most recent quarter. It had also reported a nine month loss in earnings of €640.8 million in its latest results.
The disposal of BayWa’s major international businesses, along with cost cutting and a significant reduction in headcount in Germany, will generate returns that will immediately be put towards a debt repayment scheme while strengthening the company’s liquidity.
In December, NZX-listed T&G Global, which has a current market capitalisation of of $196.35m, announced it was in frame for a sale, although it refused to comment further, referring comment to BayWa.
However, business for the local producer continues as usual. T&G is currently taking part in Fruit Logistica in Berlin as part of the BayWa Global Produce team in advance of New Zealand’s apple harvesting season starting in March.
The growing, packing, cool storing, sales and marketing of apples worldwide, including into North America and Asia, is the bulk of T&G’s business. The company has said returns for its premium Envy and Jazz apple brands this season were the highest for a number of seasons as the company has worked to mitigate about $1.5b worth of damage to fruit production in Hawke’s Bay in the wake of Cyclone Gabrielle.
A report of the US Department of Agriculture on this country’s horticulture sector said New Zealand’s apple-planted area in the 2024/2025 year was forecast to increase substantially, to 11,100 hectares, after the decimation of Gabrielle.
It also forecast apple production of 560,000 metric tons this year, up from 483,000mt in the 2023/24 season: “This is representative of an optimistic weather outlook, implementation of farm system innovations, and a growing availability of seasonal labour. In addition, hectares planted in recent years are reaching maturity and achieving higher yields.”