According to a press report, the Chinese online retail giant JD.com is talking to existing shareholders about joining MediaMarkt and Saturn parent Ceconomy.
The Chinese have been in talks with the investment company Haniel since the summer about their share of 16.7 percent, reported “Manager Magazin” (“MM”) on Wednesday, citing insiders. At first, those involved talked past each other for a long time, but now things are starting to get serious; Deutsche Bank is involved as an advisor. According to the report, Haniel did not want to comment on the information.
According to the report, the deal is still uncertain. JD.com is not only talking to Haniel, but also to other existing shareholders, the descendants of the Beisheim and Schmidt-Ruthenbeck trading dynasties. Neither had responded to the magazine’s inquiries, it said. The three existing shareholders together have a share of almost a third in Ceconomy. If a shareholder reaches the threshold of 30 percent, he is obliged to make a mandatory offer to all other shareholders.
The family of Mediamarkt co-founder Erich Kellerhals also has a stake in Ceconomy with a good 29 percent, as does the mobile phone provider freenet with a share of 6.7 percent.
Ceconomy’s major shareholder freenet – JD.Com didn’t come knocking on our door
The Chinese online retail giant JD.Com has not yet approached Ceconomy’s major shareholder freenet about taking over its share in the electronics retail holding company.
“JD.Com has not asked us about our share,” said a freenet spokeswoman on Wednesday. freenet holds around 6.7 percent of Ceconomy shares. “Manager Magazin” had previously reported that JD.Com was interested in joining the chains’ Düsseldorf parent company Media Markt and Saturn to get in. Discussions were underway with the Duisburg family holding company Haniel. Whether there will be a conclusion remains to be seen. Haniel holds around 16.7 percent of Ceconomy shares. A Haniel spokeswoman did not want to comment on the report, and Ceconomy also did not comment.
This is how Ceconomy shares react
Fantasy about the entry of a new major shareholder fueled the recovery rally at Ceconomy on Wednesday.
The price in XETRA trading followed on from an already strong previous day with an increase of 16.47 percent to 2.39 euros.
This was due to a report in “Manager Magazin”, according to which the Chinese provider JD.com is said to be interested in joining the German electronics retailer.
At its peak on Wednesday, the price rose by almost 16 percent to close to the mark of 2.40 euros, which was last on the price board at the beginning of September. While the Ceconomy price was below 2 euros at the end of October at its lowest level in almost a year, the recovery is now continuing to take shape. The day before, the shares had followed the market rally particularly clearly with an increase of almost 8 percent. In November, the Ceconomy price increased by more than 30 percent.
The article states that the investment company Haniel is not averse to selling its share in the electronics retail chain. According to the report, Haniel initially did not want to comment on this. It is also said that there are also discussions with the descendants of the Beisheim and Schmidt-Ruthenbeck trading dynasties. According to the information, all three together account for almost a third of Ceconomy shares. If all shares were transferred to JD.com, a takeover offer would be mandatory.
“The Chinese are flirting with European or German pearls again,” said market expert Jürgen Molnar from the broker Robomarkets this morning. He mentioned the complex shareholder structure, which is why the discussions could drag on. If everyone takes part, a quick agreement is also conceivable. There can now be lively speculation about the amount of a necessary takeover offer if the 30 percent threshold is exceeded. It is also questionable which companies will be the next candidates if “China’s shopping spree in Europe continues”.
Despite the current revival of the price, Ceconomy investors have been going through a difficult time for years. While more than 13 euros were paid at the beginning of 2018 at an interim high, the period afterwards was marked by profit warnings. Further shocks came during the pandemic, when the migration of consumers to online retail left its mark. In September 2022, only 1.10 euros were paid at a record low.
FRANKFURT / HAMBURG / DÜSSELDORF (dpa-AFX / Reuters)
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