CEC.F - Ceconomy AG

Frankfurt - Frankfurt Delayed Price. Currency in EUR
4.7040
+0.0520 (+1.12%)
As of 12:07PM CEST. Market open.
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Previous Close4.6520
Open4.5980
Bid4.6440 x 0
Ask4.6570 x 0
Day's Range4.5980 - 4.7040
52 Week Range2.9100 - 6.7920
Volume1,100
Avg. Volume1,713
Market Cap1.693B
Beta (3Y Monthly)N/A
PE Ratio (TTM)N/A
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target EstN/A
  • Bloomberg

    Czech Billionaire Kretinsky’s $6.5 Billion Bid for Metro Fails

    (Bloomberg) -- Czech billionaire Daniel Kretinsky failed to win shareholder backing for his 5.8 billion-euro ($6.5 billion) bid for Metro AG, damping hopes for a turnaround of the struggling German wholesaler.Kretinsky and Slovakian partner Patrik Tkac’s offer didn’t reach the minimum level required by Wednesday’s deadline, with 41.7% of Metro’s ordinary shares issued in favor of the deal, short of the 67.5% needed, according to a statement Friday. Signs were clear that the transaction was unlikely to go through, after talks with two groups representing families of the founders this week failed to result in their support.Their bid valued the company at 16 euros per ordinary share and 13.80 euros per preferred share. Metro shares closed at 14.25 euros in Frankfurt trading Friday.European brick-and-mortar merchants like Metro are struggling to contend with the rise of Amazon.com Inc. and discount chains Lidl and Aldi. Once one of the world’s biggest retailers, Metro has struggled since splitting off from its Ceconomy electronics arm two years ago, a move that was designed to boost the shares of both but backfired. The food business has lost market share to discount grocers and it has been dragged down by its exposure to Russia, where sanctions and a low oil price made business difficult.Kretinsky -- who has a net worth of at least $3 billion, according to the Bloomberg Billionaires Index -- has built a portfolio that includes energy and media assets alongside the Sparta Prague soccer team. He acquired a stake in French newspaper Le Monde last year.All Metro shares tendered into the offer will automatically be rebooked, Kretinsky’s EP Global Commerce said in its statement.To contact the reporter on this story: Anne Riley Moffat in New York at ariley17@bloomberg.netTo contact the editors responsible for this story: Crayton Harrison at tharrison5@bloomberg.net, Kenneth WongFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Financial Times

    Czech billionaire fails to win enough backing for Metro takeover

    Czech billionaire Daniel Kretinsky has failed in his high-profile effort to buy Metro AG, after shareholders in the German food group declined to take up his €5.8bn offer. EP Global Commerce, the investment vehicle of Mr Kretinsky and his Slovak business partner Patrik Tkac, confirmed on Friday evening that at the end of the tender period it owned or had been tendered only 41.7 per cent of Metro’s shares, well short of the minimum acceptance threshold of 67.5 per cent. EP Global Commerce’s move for Metro, announced in June, was the latest episode in a buying spree that has turned Mr Kretinsky, dubbed the “Czech Sphinx” for his inscrutability, into one of Europe’s most prominent dealmakers.

  • Billionaire Shopper Is Happy to Wait in Line
    Bloomberg

    Billionaire Shopper Is Happy to Wait in Line

    (Bloomberg Opinion) -- Olaf Koch, chief executive of the German food wholesaler Metro AG, looks to have seen off a 5.8 billion euro ($6.5 billion) takeover attempt by the Czech billionaire Daniel Kretinsky. That’s both a blessing and a curse.On Monday, the bidding vehicle for Kretinsky and his business partner Patrik Tkac, said it had failed to convince two of the cash-and-carry group’s founding shareholders to back its 16 euro per share offer.With the holdouts (the Meridian Foundation and the Otto Beisheim Foundation) owning more than 20% of Metro’s shares, Kretinsky’s EP Global Commerce is unlikely to reach the 67.5% threshold for the transaction to succeed. The bidder said it won’t raise its price nor lower the minimum acceptance threshold. So the offer, due to expire on Wednesday, will probably lapse. Shares in the target company fell by about 6% to just above 14 euros on Tuesday morning.While Metro hasn’t responded to the Kretinsky vehicle’s statement, it no doubt welcomes the likely vanquishing of its predator. The grocer had argued that EP Global’s offer undervalued the group and that it had better prospects on its own.This is no unalloyed victory, though. Metro must now deliver on its promises. The company has struggled to improve its poor performance after a profit warning in April 2018, which was driven by problems in its Russia business, and a subsequent cut to its earnings outlook. While there was some improvement in its fiscal third quarter, helped by faster-growing markets such as supplying hotels and restaurants, it has a long way to go. There’s one bright spot: The company is in talks to dispose of its Real hypermarkets unit and is trying to sell a stake in its China operations. These deals could deliver proceeds of more than 1 billion euros.Even so, it’s hard to see why the group’s prospects will be much different from here on. Booker, the British wholesaler that is now part of Tesco Plc, was able to rejuvenate Metro’s British arm after it acquired the unit in 2012. But the German company hasn’t managed to do the same with its own businesses.If things don’t improve significantly in the next year, then Koch will be under severe pressure after seeing off the bid. What’s more, Kretinsky will still have a 17.5% stake in Metro and could agitate for change. That’s not a comfortable position for any chief executive.As we’ve noted before, the bidder is in a decent position whatever the outcome. If Koch does finally turn around Metro, Kretinsky would benefit as a big shareholder. If not, he can return with another bid. Should Metro continue to struggle, his hand may actually be strengthened.(This column was updated to clarify Metro's 2018 profit warning and earnings outlook cut.)To contact the author of this story: Andrea Felsted at afelsted@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Billionaire Said to Weigh Raising Metro Bid Facing Rejection
    Bloomberg

    Billionaire Said to Weigh Raising Metro Bid Facing Rejection

    (Bloomberg) -- Czech billionaire Daniel Kretinsky is exploring raising his offer for German wholesaler Metro AG as the existing 5.8 billion-euro ($6.4 billion) bid faces a growing risk of rejection by shareholders, according to people familiar with the situation.Representatives for Kretinsky are set to meet as soon as Monday with two key shareholders to discuss revising the offer, according to the people, who asked not to be identified because the proceedings are private.Kretinsky and his Slovak partner Patrik Tkac are considering lifting their offer amid shareholder reluctance to sell at 16 euros a share, the people said. They may consider raising it to about 17 euros a share because Metro’s two key shareholders want as much as 18 euros while the bidders have so far been reluctant to pay much more than 16 euros, the people said. They also may have to put up more equity to dispel concerns that their bid is highly leveraged, the people said.Depending on the negotiations and shareholder acceptance rates, the investor duo may decide not to table a new proposal. EP Global, the bidding vehicle for the Eastern European entrepreneurs, said in a statement in late July in response to Metro’s rejection that it’s convinced the offer is “very attractive” and the capital structure “very solid.”EP Global said on Friday that rumors about a possible increase of their bid to 17 euros a share are “incorrect” and didn’t come from them, according to an emailed statement to Bloomberg News after the report. The firm also reconfirmed its intention to have a constructive dialogue with key shareholders.The current bid of 16 euros a share -- 50 cents above Friday’s close -- undervalues the company, Metro has said.Kretinsky and Tkac have secured about one-third of Metro’s shares in a tender offer that expires Wednesday. That’s a far cry from the 67.5% threshold for the transaction to succeed.Kretinsky and Tkac pounced in June after building a stake last year, saying they saw an opportunity to turn around Metro as it sheds its retail operations and focuses on cash-and-carry outlets across Germany and eastern Europe.European bricks-and-mortar merchants are struggling to contend with the rise of Amazon.com Inc. and discount chains Lidl and Aldi. If Kretinsky and Tkac succeed in their bid, they would join the likes of Mike Ashley, the billionaire U.K. entrepreneur whose Sports Direct International Plc took over House of Fraser, and Russia’s Mikhail Fridman, who’s moved to take control of Spanish grocer DIA.A representative for Metro declined to comment.The shares fell this week after the two key shareholders -- foundations representing investors whose families helped create Metro -- slightly increased their combined stake. On Monday evening, they said they won’t accept the offer and instead will pool their shareholdings to strengthen their position.A statement by the foundations left the door open to alternatives beyond a simple sweetening of the current bid. The groups said they were “open to diverse and constructive solutions.”Options could include retaining a portion of the current ownership stakes and agreeing to hand control to the bidders in exchange for an exclusive payment, one person said.If the bid succeeds, Kretinsky plans not to pay dividends, according to the offer document.(Updates with denial from EP Global in fifth paragraph. An earlier version of this article corrected the spelling of Patrik Tkac’s name.)To contact the reporters on this story: Eyk Henning in Frankfurt at ehenning1@bloomberg.net;Richard Weiss in Frankfurt at rweiss5@bloomberg.netTo contact the editors responsible for this story: Kenneth Wong at kwong11@bloomberg.net, Eric PfannerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Ceconomy AG (FRA:CEC) Has Attractive Fundamentals
    Simply Wall St.

    Ceconomy AG (FRA:CEC) Has Attractive Fundamentals

    Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on...

  • Reuters

    UPDATE 4-France's Carrefour free to focus on home market after retreat from China

    PARIS/SINGAPORE/BEIJING, June 24 (Reuters) - Shares in France's Carrefour rose on Monday after it became the latest Western retailer to retreat from the Chinese market as fierce competition from domestic rivals and a growing online market puts pressure on foreign firms. Investors welcomed a long-awaited all-cash deal struck at what analysts said was a good enough price in view of Carrefour's falling sales and operating losses in China. Carrefour, which has been in China since 1995, agreed to sell 80% of its Chinese operations to electronics retailer Suning.com for 620 million euros ($705 million).

  • Reuters

    Germany's Metro to expect at least eight second-round bids for China unit: sources

    At least eight suitors are preparing second-round bids to buy a majority stake in German wholesaler Metro AG's Chinese operations, Reuters learned from people directly involved in the matter, as suitors vie for heft in a changing offline landscape. A deal could see Metro's China business valued at $1.5 billion to $2 billion, Reuters previously reported. Interest in Metro comes as a maturing e-commerce market and big-data capabilities transform China's traditional wholesale and retail sectors, with technology majors such as Alibaba Group Holding Ltd aggressively expanding offline.

  • Reuters

    Germany's Metro to expect at least eight second-round bids for China unit -sources

    At least eight suitors are preparing second-round bids to buy a majority stake in German wholesaler Metro AG's Chinese operations, Reuters learned from people directly involved in the matter, as suitors vie for heft in a changing offline landscape. A deal could see Metro's China business valued at $1.5 billion to $2 billion, Reuters previously reported. Interest in Metro comes as a maturing e-commerce market and big-data capabilities transform China's traditional wholesale and retail sectors, with technology majors such as Alibaba Group Holding Ltd aggressively expanding offline.

  • Easy Come, Easy Go: How Ceconomy (FRA:CEC) Shareholders Got Unlucky And Saw 84% Of Their Cash Evaporate
    Simply Wall St.

    Easy Come, Easy Go: How Ceconomy (FRA:CEC) Shareholders Got Unlucky And Saw 84% Of Their Cash Evaporate

    Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card! It is a pleasure to report that the Ceconomy AG (FRA:CEC) is up 51% in the last quarter. But that doesn't change the...

  • Metro's $1.5 Billion China Sale Draws Tencent, Citic PE Interest
    Bloomberg

    Metro's $1.5 Billion China Sale Draws Tencent, Citic PE Interest

    The business, which could fetch at least $1.5 billion, has also drawn interest from local supermarket operator Yonghui Superstores Co., the people said. The German retailer is willing to sell as much as 80 percent of the Chinese business while retaining a significant minority if an attractive offer is made, Bloomberg News reported last month. The company picked Citigroup Inc. and JPMorgan Chase & Co. to run a review of its Chinese business, people with knowledge of the matter said last year.

  • Reuters

    Exclusive: Metro kicks off China unit sale, likely to fetch $2 billion valuation - sources

    German wholesaler Metro AG has kicked off the sale of its China operations by calling for bids, in a deal that would value the business at between $1.5 billion (1.1 billion pounds) and $2 billion, two people with direct knowledge of the deal said. Metro, which owns 95 stores in China and real estate assets in major cities such as Beijing and Shanghai, is planning to offload a majority stake in its China business, said the people. The sale move is part of a global reorganisation of the wholesaler and comes as China's wholesale and retail sectors are experiencing disruption from e-commerce players.

  • Should You Investigate Ceconomy AG (FRA:CEC) At €4.99?
    Simply Wall St.

    Should You Investigate Ceconomy AG (FRA:CEC) At €4.99?

    Ceconomy AG (FRA:CEC), which is in the specialty retail business, and is based in Germany, led the DB gainers with a relatively large price hike in the past couple ofRead More...

  • Can We See Significant Institutional Ownership On The Ceconomy AG (FRA:CEC) Share Register?
    Simply Wall St.

    Can We See Significant Institutional Ownership On The Ceconomy AG (FRA:CEC) Share Register?

    Want to participate in a short research study? Help shape the future of investing tools and receive a $60 prize! The big shareholder groups in Ceconomy AG (FRA:CEC) have power Read More...