RCS - Deutsche Beteiligung - Edison issues review on Deutsche Beteiligungs

Deutsche Beteiligungs AGAnnouncement

20/08/2020 09:50

RNS Number : 7103W
  
Deutsche Beteiligungs AG
  
20 August 2020
  
 

 
London, UK, 20 August 2020
Edison issues review on Deutsche Beteiligungs (DBAN)
Deutsche Beteiligungs (DBAG) saw a partial rebound of its investment portfolio value in Q320 due to higher market multiples. While this had a €60.6m net positive impact in 9M20, it was more than offset by reduced earnings forecasts for DBAG's portfolio companies, especially in its core sectors (eg automotive). As a result, DBAG's NAV total return (TR) in 9M20 was a negative 4.8%. Meanwhile, the fund services business delivered a solid €6.6m profit in 9M20 (vs €1.6m in 9M19), which should improve further with the start of DBAG Fund VIII's investment phase in August (it recently announced it first MBO).
 
DBAG's shares tend to trade at a premium to NAV (defined as total equity), which in our view reflects the market-implied value of its fund services business. The recent market turmoil saw DBAG's shares trade down to a 23% discount to NAV on 19 March 2020. They have since rebounded by 32% while the NAV has declined by 5%, so the shares are currently trading at a 13% premium.   

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