DEAG Deutsche Entertainment Aktiengesellschaft: Buyback of 49% of DEAG Classics AG with simultaneous sale of the shares in Raymond Gubbay Limited
DGAP-News: DEAG Deutsche Entertainment Aktiengesellschaft: Buyback of 49% of DEAG Classics AG with simultaneous sale of the shares in Raymond Gubbay Limited
DGAP-News: DEAG Deutsche Entertainment Aktiengesellschaft / Key word(s): Miscellaneous
26.06.2018 / 16:59
The issuer is solely responsible for the content of this announcement.
DEAG: Buyback of 49% of DEAG Classics AG with simultaneous sale of the shares in Raymond Gubbay Limited
– First successful transaction as part of the long-term strategy to successively reduce minority interests to increase earnings per share
– Core market in the UK to be further expanded
Berlin, 26 June 2018 – DEAG Deutsche Entertainment Aktiengesellschaft (DEAG), Berlin, ISIN: DE000A0Z23G6, Ticker: ERMK, listed in the Prime Standard, is reacquiring 49% of DEAG Classics AG from Sony Music Entertainment Germany GmbH and will own 100% of the shares in DEAG Classics AG including the shareholding in The Classical Company AG (Switzerland). As part of the transaction, DEAG Classics AG is selling its shares in the English Raymond Gubbay Limited to Sony Music Entertainment International Limited. The joint projects of Raymond Gubbay Limited and DEAG companies such as Kilimanjaro Live Limited will continue unchanged and the cooperation should be further expanded. DEAG Classics works exclusively with Artists like Anna Netrebko and Yusif Eyvazov but also works with Rolando Villazón, the Berlin Philharmonic Orchestra, Till Brönner, Joja Wendt and The Piano Guys and will benefit 100 % from its success going forward. The transaction represents a first step towards successively reducing minority interests with the aim of increasing the earnings per share attributable to DEAG shareholders. Proceeds are intended to further strengthen DEAG’s position in its core market of the UK.
Prof. Peter L.H. Schwenkow, CEO and founder of DEAG, comments: “The transaction enables us to continue to achieve two strategic goals. With the complete acquisition of 100% of the shares of DEAG Classics AG, we will increase earnings per share within the next few years. And with the cash inflow of EUR 10,6 million, we are in a position to accelerate the expansion of our position in the British market. The proceeds will also continue to serve our goal of successively reducing minority interests in order to return to an attractive dividend policy.”
DEAG Deutsche Entertainment AG (DEAG) is a leading entertainment service company and a provider of Live Entertainment in Europe with subsidiaries in its core markets. DEAG produces and profitably organises a broad range of events and concerts. As a Live Entertainment service company with an integrated business model DEAG has extensive expertise in the organisation, marketing and holding of events, as well as in ticket sales via its own ticketing platform ‘MyTicket’ for its own and third-party content. The highly scalable business model of MyTicket strengthens DEAG on its way to increasing profitability. DEAG promotes around 4,000 concerts and events a year and currently sells more than 5 million tickets, of which a steadily increasing share is sold via its high-turnover ticketing platform MyTicket.
Founded in Berlin in 1978 and listed since 1998, DEAG’s core businesses include Rock/Pop, Classics & Jazz, Family Entertainment and Arts+Exhibitions. The Family Entertainment and Arts+Exhibitions divisions in particular are of great importance to the further development of DEAG’s own content. With its strong partner network, DEAG is excellently positioned in the market as an internationally active Live Entertainment service company.
DEAG shares (ISIN: DE000A0Z23G6 | WKN: A0Z23G | ERMK) are listed in the Prime Standard of the Frankfurt Stock Exchange, the quality segment of Deutsche Börse.