CEC Ceconomy AG

   By Joshua Kirby 
 

Ceconomy AG said Friday that it will again submit for shareholder approval a transaction to buy a remaining minority stake in subsidiary Media-Saturn-Holding, after investors earlier this year went to court to stop the capital increase and bond issue planned to fund it.

In light of the preliminary views of the Duesseldorf court in July, the German owner of electronic-goods retailers MediaMarkt and Saturn will ask shareholders to approve the purchase of the roughly 22% stake in Media-Saturn that it doesn't currently own from investment company Convergenta. The transaction was approved by a majority of voters at an annual general meeting in May, but was derailed when some investors took the company to court in order to prevent the capital raise of around 322 million euros ($372.4 million) and issue of bonds worth EUR151 million that are planned to finance the deal. The new shares and the bonds are to be issued to Convergenta, giving it a stake of around 26% in Ceconomy.

Ceconomy will convene an extraordinary general meeting in order to submit the plans once more for shareholder approval. The meeting is dependent on the ordinary general meeting of fiscal 2022--due to be held in February--agreeing a dividend payout of around EUR63 million, Ceconomy said. This will satisfy the entitlements of the holders of preference shares, as well as paying out 17 European cents a share to holders of ordinary shares, the company added.

The payout is in line with dividend policy, which also takes into account the company's investment needs, Ceconomy said.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

November 05, 2021 12:59 ET (16:59 GMT)

Ceconomy (TG:CEC)
Historical Stock Chart
Von Mär 2024 bis Apr 2024

Ceconomy (TG:CEC)
Historical Stock Chart
Von Apr 2023 bis Apr 2024