Scout24 sees share price soar as it explores a sale
German online classified ads company Scout24 might be subject to one of Germany’s largest leveraged buyouts in years, according to the Financial Times. Last Thursday, the paper broke a story claiming that a sale could be made which takes the company private. Scout24 has retained the services of a number of banks and advisers to help with a potential sale, and investors are interested: at the end of last week, the company’s share price rocketed by 17%!
Investors sent Scout24’s share price sky-high on the back of the news
Source: Yahoo Finance
According to the Financial Times (FT), numerous private equity firms are looking at a bid for the company, with US buyout firm Silver Lake continuing its tech focus and weighing up a potential acquisition.
The FT noted that “applying a normal takeover premium” of 20% to 30% would value the company at more than $5 billion – a number that would see it “surpass the value of last year’s 4.1-billion-euro takeover of German generic drugmaker Stada.”
Last week, Scout24 named two new independent directors to its board. It also revealed that Tobias Hartmann had taken over from Gregory Ellis as CEO. The latter move was announced last month, but handover wasn’t expected to happen so soon. In a comment on the company’s change at the top, chairman Hans-Holger Albrecht said: “I am delighted that we were able to make the transition at the top management level of Scout24 six weeks earlier than planned and wish Tobias Hartmann every success and all the best for his start.”
Dominion holds Scout24 in its Global Trends Ecommerce Fund.
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