+++ Press release +++
SGT German Private Equity completes buyback
of 3,500,000 own shares
Frankfurt/Main, 28 October 2022 – SGT German Private Equity, a listed private equity asset manager, has closed its share buyback. As part of the public share buyback tender offer published 30 September 2022 on the company’s website and in the German Federal Gazette, a total of 32,148,034 shares have been tendered to SGT German Private Equity GmbH & Co. KGaA until the end of the acceptance period on 25 October 2022 (12:00 pm CET). The management assumes that the shareholders have tendered more shares than they actually wanted to sell, because they anticipated a pro rata allocation, and that some shareholders are aiming to trade for arbitrage, hence, to buy back the shares sold through the share buyback tender offer at a lower price in the stock market. The major shareholder of SGT German Private Equity, SGT Capital LLC, has also agreed to tender shares despite the buyback price being low from its point of view, in order to avoid a narrowing of the free float, i.e. not to increase its 79.3% stake in the company per the buyback.
The repurchase offer related to the acquisition of up to 3,500,000 registered no-par-value shares of SGT German Private Equity GmbH & Co. KGaA in exchange for a cash payment of 2.00 EUR per share. As the total number of shares tendered in the offer exceeds 3,500,000, all acceptance declarations for up to 100 shares will be considered in full while declarations above will be considered pro rata in accordance with section 3.5 of the offer document of the share buyback, for every 100 tendered shares on average 10.8 shares at a price of 2.00 EUR are acquired.
The tendered shares, for which the received acceptance declarations have been taken into account, are to be transferred on 2 November 2022 from the customers’ depository accounts against payment of the offered price. Shares for which the declaration of acceptance could not be taken into account, due to the pro rata consideration, remain in the customer depository accounts and are reversed to the original security identification number (WKN) A1MMEV or ISIN DE000A1MMEV4 which is listed in the scale segment of the open market at Frankfurt Stock Exchange.
After completion of the share buyback, SGT German Private Equity owns 3,500,000 own shares (7% of the companies’ registered share capital).
Unaware of the tender volume of the other shareholders, the major shareholder has not been able to calculate the volume to be tendered in order not to increase its shareholding in the Company ex ante. As a result, it now holds 78.9% of the Company after the buyback has been completed. In this regard, it has declared its intention to acquire the 164,000 SGT shares missing to reach its previous shareholding in the market over the next months.
The management intends to issue share buyback tender offers every year in the future.
Investor Relations Contact
Rosenberg Strategic Communications
+49 170 302 8833
About SGT German Private Equity
SGT German Private Equity is a Germany-based listed private equity asset manager with registered office in Frankfurt/Main. Its 100% subsidiary SGT Capital Pte. Ltd. is a global alternative investment and private equity asset manager headquartered in Singapore.
SGT Capital Fund II, with a geographical focus on Europe and North America (fund lifetime ten years), invests in market leaders and utilizes its proprietary expertice to further globalize the businesses, particularly into Asia markets. SGT has targeted fundraising volume of 2 to 3 billion USD. The management team has many years of senior experience at renowned addresses – global private equity houses, management consultancies and investment banks. SGT Capital currently manages its issued Private Equity Funds, and a joint venture with an Asian financial services provider, in a total volume of more than 800 million USD.
From its origin as a leading German venture capital provider under the German Startups Group brand SGT German Private Equity also holds a heritage portfolio of minority stakes in some promising German Startups.