20.06.2018
CECONOMY AG DE0007257503
DGAP-Adhoc: CECONOMY AG: Acquisition of a 15% stake in PJSC M.video against transfer of the Russian business of Media-Saturn Group
DGAP-Ad-hoc: CECONOMY AG / Key word(s): Mergers & Acquisitions
CECONOMY AG: Acquisition of a 15% stake in PJSC M.video against transfer of
the Russian business of Media-Saturn Group
20-Jun-2018 / 00:18 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation
(EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Media-Saturn-Holding GmbH (MSH), a majority shareholding of CECONOMY AG
(CECONOMY), today signed a share purchase agreement with a company of Safmar
Group (Safmar) relating to the acquisition of a 15% stake in publicly listed
PJSC M.video (M.video), the leading Russian consumer electronics retailer,
by MSH and the transfer of its entire loss-making Russian MediaMarkt
business to Safmar. The consummation of the transaction is, inter alia,
subject to the approval by the Russian antitrust agency.
MSH will pay a purchase price in the amount of approx. EUR 258m based on
today's exchange rates. Depending on the future development of certain
financial ratios of M.video the purchase price may be reduced by an amount
of up to EUR 86m based on today's exchange rates. The purchase price is
subject to further customary adjustment mechanisms which might result in an
increase or reduction. The transaction will entirely eliminate the operating
losses of the Russian business of MSH and hence is in line with the
communicated strategic agenda of CECONOMY. At the same time the transaction
enables MSH to participate in the future value development of M.video.
On the basis of the available figures per 31 March 2018, CECONOMY will
likely incur an aggregated negative one-time impact of around EUR 250
million on its net income as a result of the transaction. This effect
together with the ongoing operative results of the transferred Russian
business will be recorded as discontinued activities.
The deconsolidation of the loss-making Russian business leads to technical
adjustments with regards to CECONOMY's earnings outlook (excluding the
earnings contributions from the investment in Fnac Darty S.A. and excluding
the discontinued operations) for the current financial year 2017/18. The
comparable figures for the fiscal year 2016/17 increase from EUR 704 million
to EUR 717 million as regards the EBITDA and from EUR 471 million to EUR 498
million as regards the EBIT. Due to this increased comparison basis and
without the improvement in the results of the Russian business in the low
double-digit million Euro range anticipated for the fiscal year 2017/18,
CECONOMY now expects an increase in both EBITDA and EBIT in the low to
medium single-digit percentage range.
Financial ratios: Further background as regards the financial ratios
referred to may be found on page 51 of the financial report for the
financial year 2016/17 published on the company's homepage, accessible via
the following link:
https://www.ceconomy.de/media/ceconomy_annnual_report_2016_17.pdf
Person making the notification: Sebastian Kauffmann, Vice President Investor
Relations, CECONOMY AG
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20-Jun-2018 CET/CEST The DGAP Distribution Services include Regulatory
Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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Language: English
Company: CECONOMY AG
Benrather Straße 18-20
40213 Düsseldorf
Germany
Phone: +49 (0)211 5408-7223
Fax: +49 (0)211 5408-7005
E-mail: [email protected]
Internet: www.ceconomy.de
ISIN: DE0007257503, DE0007257537, Weitere:
www.ceconomy.de/de/investor-relations/
WKN: 725750, 725753, Weitere:
www.ceconomy.de/de/investor-relations/
Indices: MDAX
Listed: Regulated Market in Dusseldorf, Frankfurt (Prime
Standard); Regulated Unofficial Market in Berlin, Hamburg,
Hanover, Munich, Stuttgart, Tradegate Exchange
End of Announcement DGAP News Service
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696837 20-Jun-2018 CET/CEST
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