The ongoing dispute should end: Ceconomy advertises the takeover of MediaSaturn – Ceconomy shares lower | message
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CEO Bernhard Düttmann advertised the plans in a presentation that was spread in advance. These would ensure simpler structures in the future. The controversial Media-Saturn founding family Kellerhals parted ways with their minority stake according to the plans Media Markt and Saturn and goes directly on board at Ceconomy. If the shareholders agree to the transaction at the virtual general meeting as expected, the long power struggle between the family and the Düsseldorfers over the electronics retail chains should come to an end. “Our agreement heralds a new level of long-term cooperation,” said Jürgen Kellerhals.
“This is definitely a historic moment, because it is the end of a protracted dispute that has cost a lot of money, energy and nerves to this day,” said Jella Benner-Heinacher from the DSW shareholders’ association. The major shareholders, including the Duisburg family holding Haniel and Hamburg-based freenet, had already backed the transaction.
The Düsseldorf Holding had reached an agreement with the Media Markt founding family Kellerhals to take over the remaining 21.6 percent of the shares in MediaMarktSaturn. In return, the Kellerhals family holding Convergenta will receive a 25.9 percent stake in Ceconomy, convertible bonds worth 160 million euros and 130 million euros in cash. Convergenta ultimately wants to increase its stake to 29.9 percent. Convergenta wants to “accompany the company on its successful path,” said Convergenta boss Kellerhals.
However, despite a booming online business, Media Markt and Saturn are currently suffering from the consequences of the Corona crisis. Numerous stores in the German home market are temporarily closed. Only last week Ceconomy had to throw the annual forecast overboard.
On Wednesday, the Ceconomy share on XETRA was temporarily 1.05 percent down to 5.16 euros.
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Image sources: CECONOMY