Press Releases

CECONOMY signs Russian deal with M.video / Safmar and pushes portfolio optimization and consolidation

06/20/2018

  • MediaMarktSaturn acquires a strategic stake of 15% in M.video, the leading Russian Consumer Electronics retailer, and will transfer its loss-making Russian business to Safmar, M.video's controlling shareholder
  • The purchase price amounts to €258 million, subject to further customary adjustments
  • M.video is committed to join the European Retail Alliance
  • Transaction eliminates operational losses of MediaMarkt Russia, ensures continued participation in one of the fastest growing CE markets in Europe and marks a next significant step in the consolidation of the Consumer Electronics industry
  • Technical adjustment of CECONOMY's outlook for financial year 2017/18 as a result of the transfer and deconsolidation of the Russian business

Dusseldorf, 20 June 2018 - CECONOMY AG's ("CECONOMY") majority shareholding Media-Saturn-Holding GmbH ("MediaMarktSaturn"), has signed a share purchase agreement to acquire a 15% stake in Russia's leading Consumer Electronics retailer PJSC M.video ("M.video") from a company of Safmar Group ("Safmar").

The purchase price amounts to €258 million (based on current exchange rates) in addition to the transfer of the entire Russian business of MediaMarktSaturn to Safmar. M.video is committed to join the European Retail Alliance and to become the third member next to MediaMarktSaturn and Fnac Darty. Subject to M.video's EBITDA performance compared to agreed targets in the years 2018 and 2019, the purchase price may be reduced by an amount of up to €86m. The purchase price would be subject to further adjustment mechanisms which might result in an increase or reduction of the purchase price. Furthermore, the overall transaction remains subject to certain customary conditions such as regulatory approvals. The closing is expected by September 2018.

The complete press release you will find here.