Dusseldorf, 29 June 2018 - CECONOMY AG ("CECONOMY") will increase its share capital by around 10% or 32.6 million new ordinary shares under exclusion of subscription rights. In a private placement, all new shares will be issued at €8.50 per share to digital lifestyle provider freenet AG ("freenet"). The issue price equals a premium of 18% based on the XETRA closing price of CECONOMY's ordinary shares of €7.23 on 28 June 2018. The consummation of the transaction is subject to customary conditions and expected until August 2018. CECONOMY will use the proceeds of around €277 million to strengthen its balance sheet and to increase its financial power for the continued implementation of its strategic agenda.
"We are delighted to welcome such an exceptional industry expert as a key shareholder to join us in the further implementation of our strategic agenda. The investment of freenet is a clear vote of confidence in CECONOMY's strategy and the future growth potential of our company. Our three anchor shareholders Haniel, Meridian Stiftung and Beisheim as well as our supervisory board also warmly welcome the new shareholder", says Pieter Haas, CEO of CECONOMY.
"By way of our distribution cooperation, we have established a long-standing and very successful cooperation with MediaMarktSaturn which is based on mutual trust", says Christoph Vilanek, CEO of freenet. "We aim to unlock considerable impetus going forward for our mobile communications business and also for the TV and Digital Lifestyle business."
freenet will become the fourth anchor shareholder of CECONOMY, while its role as a supplier and partner of MediaMarktSaturn remains unaffected. Founded in 2005, freenet provides network-independent telecommunications services focusing on mobile communications, mobile Internet, TV, media and digital lifestyle applications. In Germany, it is the largest independent telecommunication provider. For more than 25 years, MediaMarktSaturn Germany and freenet's wholly owned subsidiary Mobilcom-Debitel have a successful and long-term partnership, making best use of MediaMarktSaturn's multi-channel sales channels to offer telecommunication products and services.