With the blessing of its shareholders, German electronics retail holding company Ceconomy can finally put an end to its dispute with Media-Saturn minority shareholder Kellerhals and give itself a simpler group structure. The owners of the common and preference shares supported the plans with a clear majority at the extraordinary general meetings in Düsseldorf.
By a nearly 100 percent majority, they approved a complex transaction that would lead to Ceconomy’s full acquisition of electronics chains Media Markt and Saturn. At the same time, Kellerhals Holding Convergenta joins Ceconomy directly. Among other things, it will acquire a 25.9 percent stake, which it could eventually increase to 29.9 percent.
“Structural Liberation”
The plans for a simplified shareholder structure are “a structural liberation for Ceconomy and MediaMarktSaturn,” Ceconomy boss Karsten Wildberger told the shareholders’ court. The transaction must now be finalized by the end of September, he announced after the vote.
Ceconomy shareholders had already approved the transaction by a large majority in 2021, but new votes were needed following complaints from shareholders. The dispute with the Kellerhals family is a thing of the past, Wildberger emphasized. Convergenta representative Jürgen Kellerhals had already joined Ceconomy’s supervisory board. Convergenta should now become an anchor shareholder.
Preconditions remain “rough”
But Media Markt and Saturn are still plagued with problems: Stores that were temporarily closed during the corona crisis are reopening and conditions are lifted, but the pandemic is far from over, Wildberger warned.
Ceconomy is preparing for the fact that framework conditions “will remain rough going forward”. The holding company is not entirely spared the economic consequences of the Russian invasion of Ukraine. Ceconomy withdrew from Russia in 2018 and the markets in the country went to the domestic company M.Video. In exchange, Ceconomy received a stake in M.Video, the German company has about 15 percent in the group. But because of the Russian sanctions, Ceconomy has only limited access to the shares.
The holding company is now investigating “various options to find a solution for this financial investment,” said Ceconomy boss Wildberger. According to CFO Florian Wieser, the shares are estimated at around 43 million euros. Ceconomy is also feeling the surge in energy prices due to the war in Ukraine and consumer uncertainty, Wildberger said.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
