In mid-February 2021, the Annual General Meeting had already approved the plan to fully integrate Media-Saturn into the parent company Ceconomy. Accordingly, the shares in the holding company Convergenta, the family holding company of the late Media Markt co-founder Erich Kellerhals, should go to Ceconomy by the end of the summer.
However, the project was stopped due to shareholder lawsuits. The transaction was to be funded through a mixture of newly issued common stock and convertible bonds and a limited amount of cash. Points of contention in the shareholder lawsuits are the planned capital measures to finance the purchase of the 21.62 percent that the Kellerhals family holds through Convergenta.
Against the background of the preliminary legal opinion of the Düsseldorf Higher Regional Court in connection with the shareholder actions from the beginning of July, Ceconomy now wants the shareholders to vote again. In addition, Ceconomy is considering converting today’s preferred shares into common shares. If possible, the transaction should be completed in the current financial year 2021/22, which ends on September 30th.
The planned, renewed vote at the extraordinary shareholders’ meeting in the coming year is subject to the fact that the ordinary general meeting on February 9, 2022 approves a dividend payment of around 63 million euros, the company announced. With the distribution, the right to dividends of holders of preference shares will be fulfilled for the fiscal year 2020/21 and with regard to all claims to a preference dividend to be paid later. In addition, a dividend of 17 cents per ordinary share should be paid.
Ceconomy had announced the agreement with the Kellerhals family last December after years of dispute and actually wanted to conclude it in the financial year that ended at the end of September. With the takeover and the resulting reorganization of the shareholder structure, the Düsseldorf-based company want to simplify the complex network of the group. Media-Markt-Saturn is to become a 100 percent subsidiary of Ceconomy. Ceconomy hopes that this will reduce the complexity and improve processes. The two electronics chains Media Markt and Saturn are Ceconomy’s most important stores. (dpa / pma)