EQS-News

Deutsche Beteiligungs AG: Disposal of investment in BTV Multimedia

EQS-News: Deutsche Beteiligungs AG / Key word(s): Disposal/Private Equity Deutsche Beteiligungs AG: Disposal of investment in BTV Multimedia 08.02.2023 / 08:05 CET/CEST The issuer is solely responsible for the content of this announcement. Deutsche Beteiligungs AG: Disposal of investment in BTV Multimedia

• Buy-and-build strategy successfully implemented through five add-ons
• First disposal from the DBAG ECF III portfolio
• Sales proceeds from the transaction in line with the investment’s fair value carried as at 31 December 2022

Frankfurt/Main, 8 February 2023. Deutsche Beteiligungs AG (DBAG) has very successfully concluded its investment in BTV Multimedia, a provider of equipment and services for broadband telecommunications. DBAG’s stake in the company will be sold to ETC Group, a strategic buyer headquartered in France. The shares held by DBAG ECF III (advised by DBAG) will also be sold. Corresponding agreements were signed yesterday; completion is subject to approval by the authorities. The transaction is expected to be closed within the next four months. Through its investment in BTV Multimedia, DBAG ECF III had successfully structured a smooth succession arrangement for the family-owned business. Overall, the investment in BTV Multimedia totalled 25.5 million euros, of which DBAG contributed 10.5 million.

The disposal proceeds are roughly in line with the valuation of the investment in DBAG's preliminary consolidated statement of financial position as at 31 December 2022. Given that the disposal constitutes an adjusting event after the reporting period, this affects DBAG's net income for the first quarter of the current financial year. There will therefore be no further material value contribution from the transaction in the current quarter.

First disposal from the DBAG ECF III portfolio

With the sale of the investment in BTV Multimedia, DBAG ECF III has achieved the first disposal of a management buyout (MBO) from its portfolio. Since 2018 the fund had built up a portfolio comprising three companies.

Disposal highlights the successful execution of DBAG’s investment strategy in the broadband telecommunications segment

By expanding its investment strategy to sectors outside of the manufacturing industry, DBAG has been able to take advantage of new market opportunities while reducing risks from economic and structural changes for the overall portfolio. Specifically, broadband telecommunications investments benefit from the trend towards nationwide coverage with high-performance gigabyte networks.