Czech Billionaire Křetínský Poised⁣ to Acquire ‍Majority⁣ Stake in Metro AG

PRAGUE (AP) — Czech billionaire Daniel Křetínský is on the verge of securing ⁢a controlling interest in Metro AG, ⁤the German retail giant operating department stores across Europe. Křetínský’s EPCG group, ⁤already a meaningful shareholder in Metro, known for its makro brand, launched a public offer in March to acquire additional shares at ⁤a premium.

The offer, which concluded Wednesday night, saw EPCG, which previously held 49.9% ‍of metro’s shares, seeking to increase its stake.The final results ⁣of the⁢ offer are expected to be⁣ released after Easter, according to EPCG spokesman Daniel Častvaj.

Metro’s Extensive European Presence

Metro ‍operates 623 stores in 21 European countries, utilizing both ⁣customary department stores and warehouse-style outlets. In the Czech Republic, the network includes eight Makro stores.

Frankfurt Stock Exchange Exit

The acquisition coincides with Metro’s departure from ⁢the ⁣Frankfurt Stock Exchange, ⁢where its shares have been traded for nearly 30 years. ⁢The exchange approved the ⁢delisting last week. Friedrich Vorwerk Group, a pipe manufacturer, will ⁣replace Metro in the SDAX⁢ exchange index, which ⁤tracks 70 smaller companies.

Křetínský requested the delisting in February, calling it⁢ a “logical step” for‍ a ⁣company undergoing significant transformation while facing pressure for short-term results.He added that⁢ the existing management team is leading the transformation process and has his full support.

Křetínský’s⁢ Long-Term Metro Investment

Křetínský’s involvement ⁤with Metro ⁢began in 2018 when he purchased initial shares from Haniel holding, a company managing assets for a German business family since the 18th century. Other family-owned companies, Meridian⁢ and Beisheim, hold a combined 24.99% stake in Metro and have ⁣so far ⁢resisted acquisition attempts.

In ⁢February,Křetínský offered 5.33 euros per Metro share in his public purchase offer, a premium over the previous trading price ⁤of 3.91 euros. Metro has been ⁢experiencing losses, suspending dividend payments, and its stock value ⁣declined⁣ by 37%‍ last year. The total⁣ transaction value,⁤ including ‍previously acquired shares and the current offer, is estimated at nearly 50 billion crowns.

At ⁣Metro’s February general meeting, Roman Šilha replaced his ⁢deputy, Roman Šilha, as ⁤head of the Supervisory Board. Šilha was already a member of the board. Two other ‍Prague-nominated members remained ⁣on the council, and a fourth was added.The Metro Supervisory Board consists of 20 members.

Křetínský’s Retail Expansion

Křetínský has been actively expanding⁤ his retail holdings. Last year, he⁣ acquired the French trading network Casino. He also holds shares in FNAC Darty⁤ in France and Unieuro in Italy. In the czech Republic, he co-owns⁢ the Heureka shopping search engine with‍ PPF.

EPCG,‍ the vehicle for Křetínský’s Metro acquisition, is a⁢ key component of the EP Group. Křetínský has ⁣been consolidating his main shares across various sectors, including traditional energy⁢ and the british postal service, Royal Mail, which he is also in ⁤the⁢ process of taking over.

Through ⁣the EP Group, Křetínský controls a 56% stake in EP Global Commerce, with ⁢the remaining‍ shares held by⁣ Patrik Tkáč and his partners from the‍ Czechoslovak investment ⁢group J&T. Tkáč and Křetínský have a long-standing⁢ partnership, which extends to the Metro investment.

In⁣ Germany, Křetínský also owns the energy company Leag, which possesses significant coal deposits and operates four power plants ⁤in⁢ eastern Germany. He also agreed to invest in the metallurgical⁤ group Thyssenkrupp a year ago.