Following its market delisting, the newly private DEAG has raised €6.06m by way of a cash capital increase to fund future expansion
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The German company says it is in advanced conversations for potential acquisitions and is hoping to conclude a number of deals
By James Hanley on 27 Jun 2023
DEAG has successfully completed the placement of its corporate bond 2023/2026 with an issue volume of €50 million, which was oversubscribed by “significant margin”.
The Berlin-based company considers the demand, which was driven by institutional and private investors from Germany, Europe and overseas, to be “validation” of its growth strategy. Proceeds from the issue will be used to refinance the corporate bond 2018/2023.
The volume tendered for exchange amounts to around 30% of the outstanding bond and will be allocated at approximately 65%.
“DEAG’s operational strength, its strategy and our company’s positive prospects have convinced investors,” says DEAG CEO Peter Schwenkow. “I am extremely satisfied with the success of the bond placement, for which national and international demand was extremely high.
“We will continue our growth course and I am convinced that we will soon be welcoming new companies to the DEAG family”
The German live entertainment company says it is in advanced conversations for potential acquisitions. It is hoping to conclude a number of deals in the second half of 2023, with a focus on further strengthening its ticketing activities and expansion into new European markets.
“We will continue our growth course and I am convinced that we will soon be welcoming new companies to the DEAG family, opening up more new markets and thus further expanding our strong market position in Europe,” says Schwenkow.
DEAG revenue in the 2022 financial year increased 258.3% to around €325 million, compared to €90.7m in the previous year and €185.2m in the pre-corona year 2019. The firm expects group revenue to again top €300m in 2023, and anticipates further improvement in EBITDA, which was around €31m last year.
“We would like to thank all investors for the confidence they have shown in DEAG. The response from Germany and abroad was equally high. This bond offers investors an attractive investment opportunity and at the same time secures an attractive financing instrument for DEAG as part of our capital mix to finance additional growth in the years ahead,” adds Roman Velke, CFO of DEAG.
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