RCS - Deutsche Beteiligung - Edison issues review on Deutsche Beteiligungs

Deutsche Beteiligungs AGAnnouncement

09/12/2020 08:00

RNS Number : 9537H
  
Deutsche Beteiligungs AG
  
09 December 2020
  
 

 
London, UK, 9 December 2020
Edison issues review on Deutsche Beteiligungs (DBAN)
Deutsche Beteiligungs (DBAG) saw a mixed impact from the COVID-19 crisis on portfolio earnings in FY20, with its 'growth' sectors (broadband/telecom in particular) proving resilient, while its industrial portfolio was hit harder. Strong public equity markets drove an increase in the average EBITDA multiple used to value its portfolio (8.8x vs 7.8x in FY19). DBAG's mid-term ambition to FY23 assumes a strong pickup in investments through the recently launched DBAG Fund VIII and long-term investments carried out solely from DBAG's own balance sheet. Portfolio growth should be funded by a combination of debt and equity.
 
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 premium currently stands at 19.7% (close to its five-year average of 23%). Based on the proposed €0.80 dividend per share from FY20 earnings (down from €1.50 per share in the prior year), DBAG offers a 2.4% yield.   

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