Billionaire Daniel Kretinsky aims to delist Metro

Daniel Kretinsky plans to take the German wholesale group Metro private. The company’s management supports the Czech businessman, who currently already holds 49.99 % of Metro’s shares.

Not the first attempt

Kretinsky has offered other shareholders 5.33 euros per share. This represents a significant premium compared to the 3.90 euros per share value at the beginning of the week; however, the stock price has since risen by 37 %. If shareholders accept the offer, Kretinsky would control 75 % of the shares. Investment funds BC Equities, Beisheim Holding, and Palatin intend to retain their stakes, collectively holding 24.99 % of the shares.

Metro’s management supports the bid, stating that operating without a stock market listing would allow the company to function under calmer conditions. This is not Kretinsky’s first attempt to gain full control of the wholesale company; a similar takeover bid in 2019 was unsuccessful.

Alongside the news of the bid, Metro reported positive figures for the first quarter of its fiscal year. Its sales increased by 5.6 % to 8.6 billion euros, and EBITDA rose from 407 million euros to 412 million euros. The company aims for an organic revenue growth of between 3 and 7 % this year. Metro operates 623 stores in over thirty countries and employs 85,000 people.