RCS - Deutsche Beteiligung - Edison issues update on Deutsche Beteiligungs

Deutsche Beteiligungs AGAnnouncement

24/08/2023 07:15

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RNS Number : 2608K  Deutsche Beteiligungs AG  24 August 2023

London, UK, 24 August 2023

 

Edison issues update on Deutsche Beteiligungs (DBAG)

Deutsche Beteiligungs (DBAG) posted a 20% NAV total return in the nine months
to end-June 2023, thereby recouping the valuation loss in FY22. The uplift to
last carrying value from its recently agreed sale of R+S (implying a healthy
internal rate of return of over 40%) contributed €14m to its net income in
Q323. As a result, management now expects FY23 results to be at the upper half
of its guidance of net income at €85-115m and NAV of €610-715m. DBAG's
asset management business delivered a profit of €11.3m in 9M23, on track to
meet management's FY23 guidance of €13-15m. DBAG's shares currently trade at
a c 15% discount to last reported NAV (with the latter not capturing the value
of the asset management business).

 

While DBAG's new investment activity in the first nine months of FY23 (9M23)
was centred on add-on investments, the company announced in July 2023 three
new majority stake acquisitions: AOE Group (an agile software provider), Avrio
Energy (a biogas platform) and TBD (a critical infrastructure service
provider). These deals were at the lower end of DBAG's target range in terms
of enterprise value (€50-250m). DBAG sees more opportunities in this market
segment at present, given the better debt availability for funding smaller
transactions. We note that the Avrio Energy and TBD investments, as well as
the partial reinvestment of R+S proceeds into a minority stake in NOKERA
(strategic buyer), indicate DBAG's growing interest in energy
transition/sustainability themes.

 
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