DGAP-Ad-hoc: German Startups Group GmbH & Co. KGaA / Key word(s): Disposal
German Startups Group GmbH & Co. KGaA: German Startups Group exits its majority stake and realizes proceeds of two thirds of its market capitalization for it

17-Dec-2019 / 14:38 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.
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As part of a structured bidding process directed by London-based Technology Holdings Worldwide German Startups Group was able to achieve a significantly higher price than earlier projected by itself. German Startups Group receives a fixed price in cash, whereas the executive Exozet shareholders, founders and employees, participating through a stock option program, also partly receive Endava shares and variable purchase price components that depend on the further business development of Exozet and their retention with Exozet. Exozet's buyer is Endava plc, a New York-listed next-generation technology provider headquartered in London with over 5,900 employees and numerous branches in various locations across Europe, North and South America. Endava plc emerged a winner from the bidding process because of its convincing concept, strong rapport with the management team and a competitive bid.

In total, with the divestment of a handful of its stakes, German Startups Group has realized proceeds in 2019 amounting to more than its current market capitalization and, by that, greatly exceeded its ambitious objectives for the divestment of stakes it had set itself for this year.

German Startups Group still holds, even after the sale of its majority holding, a broad portfolio of promising investments in young German tech growth companies, such as AuctionTech, Ceritech, Fiagon, Mister Spex, Remerge and Simplesurance. In 2020, the management focuses on divestments, again, and expects this to be successful in the intended cases through trade sales and exits, generating further, significant capital gains.

Management does not plan re-investments of capital gains in shareholdings within the Venture Capital stage after it has taken note of the share price being penalized by the capital markets within the last three years due to the limited transparency of the financial data of its portfolio companies, leading to a significant discount on the Net Asset Value (NAV) per share. As long as the share price is significantly lower than the NAV per share in the eyes of the management, it wants to use sale proceeds for further share buybacks of its own shares, subject to approval of the supervisory board, and fully exercise the legally permitted volume for the use of own shares under exclusion of subscription right. In 2019 the company has already bought back more than 900.000 own shares or 7.7% of the its total shares outstanding as per end of 2018 which economically equals a high, tax-free dividend payout. Management considers the forecasted equity per share as per 31 December 2019 a good indicator for the NAV per share.

German Startups Group's management looks very confidently to the new year.

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