Media group Axel Springer intends to withdraw from the stock exchange

Last year, the Berlin-based Group agreed a strategic partnership with US financial investor Kohlberg Kravis Roberts (KKR). The aim is to grow even faster and stronger in the digital businesses. In addition to journalistic content, among other things, with the brands Image and World the Group, with more than 16,000 employees, has been operating digital classified businesses for some time. The majority of revenues are generated in digital.

In Switzerland, Axel Springer operates the joint venture Ringier Axel Springer Schweiz together with the publishing house Ringier. Its products include the business publications Handelszeitung and Balance, the consumer magazine The observer, the daily newspaper Le Temps as well as various popular magazines and journals such as L'Illustré and the Swiss Illustrated.

KKR already holds 45 percent

Shareholders have the opportunity to sell their shares to KKR before the planned withdrawal from the stock exchange. Specifically, this involves a free float of 3.6 percent. The shareholder structure is as follows: The widow of the publisher's founder, Friede Springer, and CEO Mathias Döpfner together hold around 45.4 percent of Axel Springer's share capital. According to the announcement, they do not intend to sell any shares held directly or indirectly by them in the delisting offer.

KKR acquired a large portion last year through a tender offer to shareholders. Together with accompanying acquisitions, KKR now holds around 44.9 percent of the shares.

Grandchildren stay with it

The grandchildren of the founder of the publishing house, Ariane Melanie Springer and Axel Sven Springer, also sold part of their shares to the US financial investor. Together, their remaining shares now amount to 6 percent. That is where it is to remain. A spokeswoman for KKR told the news agency on Friday, "The grandsons will not tender their shares into the delisting offer. They want to continue to accompany the transformation of the company." The Springer Group also confirmed this.

KKR is offering shareholders 63 euros per share in cash, the same price as KKR offered in its takeover bid last year. The Axel Springer share has been listed on the stock exchange since 1985.

In the fall of 2019, Springer CEO Mathias Döpfner had given an interview to the South German Newspaper said of the cooperation with KKR, which was still planned at the time: "It is a new era in the sense of a liberating blow. We can implement our growth strategy with a partner who doesn't think about the next quarterly result, but supports today what will maximize the value of the company in five years, including financially."

In fiscal 2018, Group-wide revenue was around 3.2 billion euros. Around 70 percent came from digital activities. At the end of September, the Group had announced that it was investing millions in projects at its brands Image and World at the same time as reducing the number of employees in the Group. (SDA)