Deutsche Telekom sells shares in the IPO of Scout24
Oct 5, 2015
Oct 02, 2015
- Gross proceeds of around EUR 400 million for the sale of 13.2 million shares (before greenshoe)
- Tim Höttges “Our strong belief in the potential value appreciation of Scout24 through corporate partnership has materialized”
- Lighthouse project for Deutsche Telekom Capital Partners
Deutsche Telekom has sold 13.2 million shares of Scout24 AG at the IPO executed yesterday at a price of EUR 30 per share, for total gross proceeds of around EUR 400 million. Overall, Deutsche Telekom has, to date, obtained proceeds of EUR 2.1 billion out of the sale of Scout24 stakes. Deutsche Telekom will continue to hold a 14 percent shareholding (before greenshoe) in Scout24 and be represented in the Board of Directors.
At the end of 2013, Deutsche Telekom sold 70 percent of the shares in Scout24 on the basis of an enterprise value of EUR 2.0 billion to the private equity firm Hellman & Friedman. Under the control of the new majority owner, the Company has experienced an impressive operational and financial evolution. The IPO valuation implies an enterprise value of around EUR 4.0 billion. The remaining stake in Scout24 will provide Deutsche Telekom with continued exposure to the potential upside in the share price.
"At the time of the 70 percent sale of Scout24 to Hellman & Friedman, many wondered why we were not selling the entire Company. Today, we can show that our strong belief in the potential value appreciation of Scout24 through this corporate partnership has materialized", said Tim Höttges, CEO of Deutsche Telekom.
"This has been a great success story for Deutsche Telekom. Our decisions have allowed Deutsche Telekom to maximize the value of this non-core investment while doing what is best for Scout24. We have been thrilled to partner with Hellman & Friedman on this deal and look forward to our continued cooperation. This deal has been a great lighthouse project for what we want to achieve with Deutsche Telekom Capital Partners and we look forward to many more such transactions", said Vicente Vento, CEO of Deutsche Telekom Capital Partners.
About Deutsche Telekom Capital Partners
Operating as a bridge between Europe, Silicon Valley and Israel, Deutsche Telekom Capital Partners connects people, capital and ideas, to accelerate innovation and provide value to our portfolio companies, our limited partners, and the world. Deutsche Telekom Capital Partners is Deutsche Telekom’s investment management group: with $1 billion in capital under management, more than $1.8 billion of assets under advisory contracts, and a portfolio of over 90 companies, Deutsche Telekom Capital Partners provides early and late-stage venture capital, mid-market private equity, and strategic advisory services to the Technology, Media and Telecommunications sector.