Ceconomy‘s management and supervisory board are recommending that shareholders accept JD.com‘s takeover bid. They say the Chinese e-commerce player offers a “fair price” and be “the right partner.”
Long-term transformation
“JD.com is the right partner at the right time. Together we are accelerating Ceconomy’s Experience Electronics strategy and growth trajectory”, CEO Kai-Ulrich Deissner said. Supervisory Board Chairman Christoph Vilanek also sees benefits: “The offer gives shareholders the opportunity to cash in on significant value in the short term, while strengthening Ceconomy’s long-term transformation.”
JD.com is offering 4.60 euros per share, offering a 43 % premium to the average share price over the past three months – and a 23 % premium to the closing price on 23 July. The Mediamarkt and Saturn owner calls it a “fair and adequate” price. The application period runs until 10 November.
With sales of 158.8 billion US dollars (almost 150 billion euros), JD.com is China’s largest retailer by revenue. The company is also investing in the Middle East: Jingdong Property, JD.com’s infrastructure and real estate platform, has acquired a new logistics complex in the Jebel Ali Free Zone in Dubai. Together with the distribution centre JD.com opened there in June, and a strategic partnership with Abu Dhabi Airports since July, the site will become a logistics hub for customers in the Middle East, Africa and Europe.
