The electronics store chain Media Saturn can now be completely taken over by the majority shareholder Ceconomy.
(Photo: dpa)
Dusseldorf The way for the new group structure of the electronics retail holding Ceconomy is clear. As the Handelsblatt learned from circles close to the company, the legal period against the resolution passed by the shareholders at an extraordinary general meeting in mid-April has expired without further objections. Ceconomy boss Karsten Wildberger can now get started with his plans for the group. It is a liberation after a long dispute between the shareholders about the Media-Saturn mother.
It is a complex transaction that will lead to the complete takeover of the electronics retail chain with the Media-Markt and Saturn brands by the previous majority shareholder Ceconomy.
The solution looks like this: Convergenta, the investment company of the Media-Markt founding family Kellerhals, which previously held around 22 percent in Media-Markt Saturn, is taking a direct stake of 25.9 percent in Ceconomy. She can increase this participation to up to 29.9 percent. Convergenta will thus become Ceconomy’s largest single shareholder – and Ceconomy the sole owner of Media-Markt Saturn.
The dispute over group sovereignty was considered to have been essentially settled by the end of 2020. Last year, the shareholders approved an agreement on the overall sale to Ceconomy with a large majority. The agreement and thus the merger of the companies could not be completed due to actions for annulment of the resolution. Now no further lawsuits are possible.
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At the extraordinary general meetings in mid-April, Ceconomy boss Wildberger had said that the transaction would finally be implemented by the end of September. Now it can be completed in early June, according to the circles. The advantage for the company: It can claim loss carryforwards that could still affect earnings in the current 2021/22 financial year.
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The fact that the Kellerhals family is now pulling in the same direction with the Ceconomy management is also shown by the fact that the representative of the Media Markt founding family, Jürgen Kellerhals, moved into the supervisory board in February. Other significant shareholders result from the spin-off from Metro AG that took place in 2017.
Stress from Ukraine war and lockdowns
With almost 17 percent, these are the family equity company Haniel and with just over eleven percent the investment company Meridian of the Schmidt-Ruthenbeck family, co-founders of Metro. The telecommunications service provider Freenet also holds almost seven percent, and the Metro co-founder family Beisheim just under five percent.
At the end of last week, when the figures for the second quarter were presented, the group had recorded an increase of 18.8 percent to five billion euros in sales and was able to reduce its losses. Ceconomy, like other retailers, had lost sales due to the pandemic. Business continues to be difficult due to delivery bottlenecks due to the strict lockdowns in China and the reluctance to consume as a result of Russia’s war of aggression in Ukraine and rising inflation.
In addition, Ceconomy had already withdrawn from Russia in 2018, but received a 15 percent stake in the sale of the markets there to the Russian company M.Video. Due to the Russia sanctions, Ceconomy only has limited access to the shares. The holding is examining “various options to find a solution for this financial investment,” said Ceconomy boss Wildberger when the business figures were presented last week.
In addition, the value of the shares fell by 96 million to just 43 million, CFO Florian Wieser said. However, they were devalued without affecting income, which reduces equity but not earnings.
More: Media-Saturn customers face higher prices.