Stock Take 16/06/2021

Deutsche Telekom launches sale of Netherlands subsidiary

According to insiders, Deutsche Telekom is starting the long-awaited sale of its Netherlands subsidiary and, at the same time, is looking for financially strong partners for the expensive expansion of its fibre-optic network in Germany. The DAX-listed company from Bonn already wanted to part with its Dutch business in 2015 but then strengthened the division with the acquisition of the Dutch Tele2. 

Despite high growth, especially in the USA, Telekom is facing a high debt mountain of around 130 billion euros, accumulated among other things, by the acquisition of the smaller competitor Sprint by the US subsidiary T-Mobile US and high network investments. The stock market has recently rewarded the growth course; the share, which is heavily weighted in the DAX, is about to exceed the 18 euro mark and is thus approaching its five-year high from 2017.

ABOUT YOU with successful IPO 

Today, the shares of the online fashion retailer ABOUT YOU are traded on the Frankfurt Stock Exchange. The initial price of the ABOUT YOU share was set at €25.60, 11.30 per cent above the issue price of €23.

For the stock market debut, a lock-up period of 270 calendar days was set for the existing shareholders’ Otto Group and GFH. For the other existing shareholders Heartland, SevenVentures, GMPVC German Media Pool, Fashion Media Pool, and the Executive Board, a period of 180 calendar days applies until they may sell their shares at the earliest. This is intended to prevent short-term profit-taking by existing shareholders.

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In addition to industry giant and MDAX member Zalando, ABOUT YOU is also considered one of Germany’s largest online fashion retailers. Since 2018, it has also been able to call itself Hamburg’s first unicorn, i.e. a start-up company with a market valuation of over one billion euros before an IPO. In addition to trading fashion items online, the newcomer to the stock exchange also sees itself as a technology company. Customers are to experience the “classic shopping trip” digitally via the web or smartphone interface, as the company writes on its website. And the concept seems to be working: In the 2020/21 financial year, ABOUT YOU posted sales of 1.17 billion euros. According to the company, it now has more than 1,000 employees with over 65 nationalities.

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With the capital raised through the IPO, ABOUT YOU wants to grow both in the business with end customers and in the business-to-business sector. According to a statement to investors, the lion’s share of the net proceeds is to be invested in international trading activities as well as in the technical infrastructure.

At the close of trading, the ABOUT YOU share was still trading 10.8 per cent higher at 25.49 euros via XETRA.

Porsche partner Rimac plans IPO

According to a magazine report, the Croatian e-car specialist and Porsche partner Rimac are to be floated on the stock exchange next year. The main owner Mate Rimac aims for a valuation of around five billion euros, “Manager Magazin” reported in advance on Wednesday, citing unspecified parties involved. VW’s sports car subsidiary Porsche, which had recently increased its share in Rimac to 24 per cent, had signalled its agreement. A spokeswoman for the Croatian company explained on request that several options were being examined. Nothing had been decided yet. 

According to the report, the takeover of the VW luxury sports car brand Bugatti by Rimac and Porsche, which had been planned for some time, is as good as done. According to the report, Bugatti will soon be incorporated into a joint venture in which Rimac will hold 55 per cent and Porsche 45 per cent of the shares. The supervisory boards have already given the green light. Porsche stated that the future of Bugatti would be decided within the group.

Amazon expands cloud services in Spain

Sooner than expected, namely, already in the middle of next year, Amazon will open its new data centre region in Spain. The retail giant is investing several billion US dollars in construction. Amazon Web Services (AWS), the cloud computing division of retail giant Amazon, recently announced that it would be able to open its new data centre region in Spain earlier than initially assumed. Instead of 2023, the start has now been brought forward to mid-2022, Reuters reports.

The new infrastructure region will be located in the northern area of Aragon and will have three data centres. These will have their independent power supply, cooling and security, Reuters writes. As part of its renewable energy projects, Amazon has already built a solar plant in Zaragoza, also in the Aragon region. According to the e-commerce giant, “these new projects will power Amazon Web Services’ data centres with renewable energy,” citing Reuters.

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“With the opening of our first infrastructure region in Spain, we aim to support economic growth across the country,” Amazon further announced in a related statement. So far, there are already three Edge locations in Milan, but the Aragon facility will be the retail giant’s first dedicated region in Spain. “The new region also demonstrates AWS’ continued investment in the country, which began in Madrid in 2012 when we announced our first AWS Edge location.”

Over the next ten years, Amazon plans to invest around three billion US dollars in Spain, CNBC reports. That money includes capital expenditure, construction costs, importing equipment, and operating expenses such as salaries for the roughly 1,300 employees that will be hired in Spain.

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