The history of CECONOMY

At the general meeting of CECONOMY AG, over 98 percent of the participating shareholders approved the Convergenta transaction and the associated capital increase.

As part of its annual financial statement communication, CECONOMY is presenting a strategy update. The strategy, developed jointly with Media-Saturn-Holding GmbH, consolidates various initiatives designed to contribute to a central strategic goal: becoming the customer's first choice.

CECONOMY and the minority shareholders of Media-Saturn-Holding GmbH (MSH), Convergenta Invest GmbH (Convergenta), have reached an agreement on the restructuring of the shareholder base. Under the agreement, MSH will become a wholly-owned subsidiary of the group, while Convergenta will receive shares in CECONOMY and become the largest single shareholder.

Media-Saturn-Holding and the Olympia Group are establishing a joint venture for Greece and Cyprus. Olympia holds 75 percent, MediaMarktSaturn 25 percent. Both companies are contributing their respective national subsidiaries, which will continue to operate under their existing brands. The transaction was completed on November 29, 2019, and secures Media-Saturn a sustainable presence in both markets.

CECONOMY has completed the structured sale of its approximately nine percent stake in METRO AG. In September 2018, EP Global Commerce II GmbH had already acquired 3.6 percent of CECONOMY's METRO shares in a first step. In the second step, EP Global is exercising its agreed call option to transfer the remaining 5.4 percent. This further strengthens CECONOMY's balance sheet through the inflow of liquid funds. CECONOMY now holds approximately one percent of METRO. This stake will be held for tax reasons until at least September 30, 2023.

CECONOMY AG has entered into a binding agreement to sell its approximately nine percent stake in Metro AG. EP Global Commerce II GmbH initially acquired around 3.6 percent at the end of September. Options were agreed upon for the remaining approximately 5.4 percent, which are expected to be exercised within nine months. This transaction strengthens CECONOMY's liquidity, simplifies its balance sheet, and achieves its targeted capital structure.

CECONOMY AG has resolved to increase its share capital by approximately ten percent, or by issuing around 32.6 million new ordinary shares. The entire share package will be placed with the digital lifestyle provider freenet in a private placement. freenet will pay €8.50 per share. The issue price of the new shares represents a premium of 18 percent over the Xetra closing price of CECONOMY's ordinary shares on June 28, 2018, which was €7.23. CECONOMY will use the proceeds of approximately €277 million to strengthen its balance sheet and increase its financial resources for the further implementation of its strategic agenda.

Through its majority stake in MediaMarktSaturn, CECONOMY AG is acquiring a strategic 15 percent stake in M.video, Russia's leading consumer electronics retailer, which is majority-owned by the Safmar Group. At the same time, MediaMarktSaturn is transferring its entire Russian business to the group.

The renaming of Metro AG to CECONOMY AG is officially registered in the commercial register as one of the final steps in the spin-off process.

The future CECONOMY AG signs an agreement to acquire a minority stake in the French retail company Fnac Darty S.A. With the acquisition, the future CECONOMY AG holds approximately 24.33 percent of the company’s shares, making it the largest shareholder in Fnac Darty S.A. The transaction was completed on August 24, 2017.

In the course of the split of the Metro Group into two independent companies, the future CECONOMY AG is being listed independently for the first time under the new ticker CEC in the MDAX on the Frankfurt Stock Exchange.

With the registration of the spin-off and split in the commercial register, the division of the Metro Group has been completed, and the future CECONOMY AG is an independent company.

At the general meeting, 99.95 percent of the shareholders present gave the green light for the split of the Metro Group. The independent listing of CECONOMY is to be achieved by having the Metro Group's food retail business listed on the stock exchange as a new public company.

At the Metro Group's Capital Markets Day, Metro and CECONOMY will present their strategy as future independent companies to investors for the first time. The name CECONOMY and its associated brand positioning will also be presented to the public for the first time.

The company will be divided pro forma into two organizationally separate units. With this, the new management team of CECONOMY also begins its work.

The executive board of Metro AG has decided to initiate the preparatory measures required for a division of the Metro Group. The supervisory board also approved the plans.

The next logical step for more growth and customer orientation follows: Metro AG announces its plans to split the company into two independent, publicly listed market leaders with a clear profile. The consumer electronics activities are to be consolidated at CECONOMY, while the wholesale and food retail business will be part of the newly founded company Metro. By focusing on their respective industries and customer segments – with a stronger focus, faster decision-making processes, more flexibility, and greater operational efficiency – both companies are expected to unlock greater growth opportunities.

The portfolio of the former 16 Metro Group retail lines is being sharply focused – after the sale of Galeria Kaufhof, the Metro Group now only includes three retail lines: Metro Cash & Carry, Real SB-Warenhaus, and Media-Saturn.

The Metro Group is formed through the merger of various trading companies, including primarily the Metro Cash & Carry wholesale markets and the Kaufhof Holding AG, which contributes its majority shares in the parent company of MediaMarkt and Saturn to the group.