Leoni AG (LEOGN), a German supplier of cables and wiring systems, said on Monday that it has sold its Business Group Automotive Cable Solutions or BG AM, to Thai company- Stark Corporation Public Company Limited.

Financial terms of the deal are not known yet.

With an enterprise value of 560 million euros, BG AM had posted sales of around 1.3 billion euros in 2021.

The sold business with a production network in 7 countries and around 3,300 staff is expected to create a cash inflow of 400 million euros and will also have a correspondingly positive effect on the reported free cash flow, the company said.

Aldo Kamper, CEO of Leoni, said: "With this decision, we strengthen our balance sheet, support the ongoing talks regarding our refinancing and drive forward our well-known strategic focusing on the wiring systems business."

The completion of the sale is still subject to certain closing conditions, which are expected to be granted within six months.

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