RCS - Deutsche Beteiligung - Edison issues review on Deutsche Beteiligungs

Deutsche Beteiligungs AGAnnouncement

03/03/2020 15:25

RNS Number : 8934E
  
Deutsche Beteiligungs AG
  
03 March 2020
  
 

 
London, UK, 3 March 2020
Edison issues review on Deutsche Beteiligungs (DBAN)
Deutsche Beteiligungs (DBAG) reported a marginal net loss in Q120, with income from the fund services segment offset by a more muted result from the private equity investments segment. The recent launch of DBAG Fund VIII should soon start to generate sizeable fee income. Macroeconomic and geopolitical headwinds continue to weigh on portfolio value growth (with c 50% of DBAG's portfolio in German industrials). However, in the longer term, DBAG should benefit from its buy-and-build strategy in the better-performing broadband sector.
 
DBAG's shares continue to trade at a premium to NAV (defined as total equity), which in our view comes from the market-implied value of the fund services business. This is supported by the launch of DBAG Fund VIII, which will drive fee income once the investment period commences. The premium to end-December NAV dropped to the current c 17% amid a broader market sell-off on the back of the coronavirus outbreak. DBAG's shares currently offer a dividend yield of c 4% vs the peer average of 3.1%.

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