The Payments Group Holding GmbH & Co. KGaA: PGH Group sells part of an investment from its VC portfolio

EQS-Ad-hoc: The Payments Group Holding GmbH & Co. KGaA / Key word(s): Disposal/Legal Matter The Payments Group Holding GmbH & Co. KGaA: PGH Group sells part of an investment from its VC portfolio 21-March-2025 / 17:26 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group. The issuer is solely responsible for the content of this announcement. +++ Ad-hoc Announcement +++

PGH Group sells part of an investment from its VC portfolio
 

• Proceeds of just under 1 million EUR
• Achievement of a multiple of 4x compared to acquisition costs

 

Frankfurt/Main, 21 March 2025 – German Startups Group VC GmbH, a subsidiary of The Payments Group Holding (PGH), a Frankfurt-based holding company founded in 2012 and renamed in August 2024, has partially sold an investment from its Heritage Venture Capital portfolio. This generated sales proceeds of 889k EUR, corresponding to a multiple of 4x compared to the acquisition costs.

Measured against the book value, however, a loss of 0.8 million EUR was incurred, which will fall into the 2024 financial year. This mainly due to the fact that, in the course of the sale as part of a so-called secondary transaction, GSGVC accepted a market standard discount. Nevertheless, PGH considers this sale of shares to be a success in its efforts to liquidate its Heritage VC portfolio over time.

With regard to the legal disputes reported by PGH on 13 February 2025, it should be noted that SGT Capital GP Sàrl has filed a lawsuit against PGH subsidiary TGS24 Capital Pte. Ltd. (TGS24) in Luxembourg, seeking to enforce counterclaims of 3.8 million EUR that were suddenly asserted on 14 October 2024, and that our attorneys consider baseless. SGT aims to offset these claims against existing and partially overdue loan and other receivables of PGH Group versus SGT Capital Fund II, SGT Capital LLC (SGTLLC) and SGT Beteiligungsberatung GmbH (SGTBB). In doing so, they disregard the aspects mentioned in the press release dated 13 February 2025. PGH's lawyers consider the lawsuit to have no merits and have constituted themselves at the court for defense. Even if they were unsuccessful, this would not be of economic importance for PGH Group because TGS24 would, in its opinion, have claims for damages against the former managing directors of TGS24 and would otherwise be liquidated without any effect on PGH Group. It cannot be ruled out that the other party has filed the lawsuit merely to justify and maintain the derecognition of the liabilities of SGT Capital Fund II, which may already have taken place, inter alia vis-à-vis its fund administrator CSC Intertrust, in order to gain time for its payment to PGH.