Scout24 could divest $2.8B classifieds unit under activist pressure
August 14, 2019- Share:
German classifieds company Scout24 has announced it will conduct a strategic review of its AutoScout24 auto sales division, with Reuters reporting a sale of the business could be worth as much as €2.5 billion (about $2.8 billion). Last week, activist hedge fund Elliott Management urged the company to sell its car listings business and expand a recently announced €300 million share buyback plan. Elliott reportedly holds a 7% stake in Scout24, which has been publicly traded since 2015.
The drama comes on the heels of a failed PE mega-deal. Back in February, Blackstone and Hellman & Friedman agreed to purchase a majority stake in Scout24 in a deal that gave the business an enterprise value of €5.7 billion. Management officially recommended the offer, which valued Scout24 at €46 per share. But the bid failed to get approval from the required 50% of shareholders and was ultimately rejected in May.
Related read: Apollo's $15B mega-deal falls apart in final moments
The drama comes on the heels of a failed PE mega-deal. Back in February, Blackstone and Hellman & Friedman agreed to purchase a majority stake in Scout24 in a deal that gave the business an enterprise value of €5.7 billion. Management officially recommended the offer, which valued Scout24 at €46 per share. But the bid failed to get approval from the required 50% of shareholders and was ultimately rejected in May.
Related read: Apollo's $15B mega-deal falls apart in final moments
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