DUESSELDORF (dpa-AFX) - Ceconomy AG (MTAGF.PK, MTTRY.PK) reached an agreement with Convergenta Invest GmbH, the investment company of the Kellerhals family, to buy the remaining stake in the German consumer electronics retailer's subsidiary Media-Saturn.
Ceconomy said it will acquire the minority stake of 21.62% in Media-Saturn-Holding GmbH held by Convergenta for around 815 million euros in Ceconomy shares, convertible bonds and cash.
As a consequence of the deal, Convergenta will, prior to exercising the conversion right, become a shareholder with a stake of about 25.9% of the share capital of Ceconomy. Convergenta aims at a stake of up to 29.9% of the ordinary shares.
Ceconomy noted that Convergenta has undertaken not to acquire any further shares in Ceconomy or to take any other measures which would lead to a change of control and a mandatory offer until expiry of six months after consummation of the capital increase through contribution in kind, but until 31 December 2021 at the latest.
In addition, Convergenta has committed until expiry of six months after consummation of the capital increase through contribution in kind, but until 31 December 2021 at the latest, to divest at most up to four percent of the ordinary shares issued by Ceconomy.
Ceconomy said that the transaction will make its tax-loss carry-forwards, which amount to around 1.2 billion euros each for corporate and trade tax, structurally usable.
The transaction is expected to increase earnings per share from the first financial year onwards.
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