Successful placement of subsidiary STS Group AG

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  • Issue price of EUR 24 per share leads to a volume of over EUR 55 million
  • Gross proceeds for Mutares of over EUR 31 million
  • STS Group AG generates gross volume of EUR 24 million
  • Most successful transaction for Mutares AG

The investment company Mutares AG has successfully placed its subsidiary STS Group, an international systems supplier for the automotive industry, in the course of an IPO. The first trading day of STS Group shares in the Prime Standard of the Frankfurt Stock Exchange is expected to be June 1, 2018. At an issue price of EUR 24 per share, STS Group AG is valued at EUR 144 million.

In addition to the exit proceeds of more than EUR 31 million, given the greenshoe is exercised, Mutares AG will continue to be the majority shareholder of STS Group AG with 62 percent and thus participate decisively in the value development of the company.

It is the first IPO of a portfolio company of Mutares, which has thus opened up a new, attractive exit channel for the future. The Management Board of Mutares AG confirms the success of its buy & build strategy implemented for the first time with STS Group. “The successful IPO is an extremely important milestone for us. It shows how well and sustainably our strategy works. At the same time, the IPO marks for us a significant step as a new, additional form of exiting investments in our further portfolio development. The STS IPO accelerates the growth potential of Mutares AG,” said Dr. Kristian Schleede, Member of the Management Board of Mutares AG.

With this accomplished IPO Mutares AG successfully supports the buy & build strategy and thus draws a blueprint for the strategic development of other, also prospective, portfolio companies.

Following an initial investment of a symbolic purchase price in 2013, STS has been strategically shaped, built up and supplemented in the past two years through several transactions. Revenues in this period more than tripled to EUR 425 million (pro forma basis) in 2017.

The book value of the shares sold by Mutares AG amounts to EUR 1.3 million. Mutares AG will continue to strategically support the growth of the STS Group even after the IPO. At the same time, Mutares AG will receive new funds which will be used, among other things, to carry out add-on acquisitions at subsidiaries and to promote their growth as well as to pay attractive dividends to the shareholders of Mutares AG in the future. “We are very proud of this IPO of STS Group. The transaction value is by far the highest in Mutares’ history,” said Robin Laik, CEO of Mutares AG.

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Disclaimer
These materials do not constitute an offer of securities for sale or a solicitation of an offer to purchase securities (the “Securities”) of STS Group AG (the “Company”) in the United States, Australia, Canada or any other jurisdiction in which such offer or solicitation is unlawful. The Securities referred to herein may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan subject to certain exceptions.

The Securities of the Company may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”). The Securities of the Company have not been, and will not be, registered under the Securities Act. There will be no public offering of the securities in the United States. Any sale in the United States of the Securities mentioned in this communication will be made solely to “qualified institutional buyers” as defined in, and in reliance on, Rule 144A or another exemption under the Securities Act.

This publication constitutes neither an offer to sell nor a solicitation to buy securities of STS Group AG. The offer is being made solely by means of, and on the basis of, the published securities prospectus (including any amendments thereto, if any). An investment decision regarding the publicly offered securities of STS Group AG should only be made on the basis of the securities prospectus. Following the approval of the securities prospectus by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)), the prospectus will be available free of charge from STS Group AG, Zeppelinstrasse 4, 85399 Hallbergmoos, Germany, or on the STS Group AG website.

In the United Kingdom, this document is only being distributed to and is only directed at persons who (i) are investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Order”) or (ii) are persons falling within Article 49(2)(a) through (d) of the Order (high net worth companies, unincorporated associations, etc.) (all such persons together being referred to as “Relevant Persons”). This document is directed only at Relevant Persons and must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this document relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.

Company profile of Mutares AG

Mutares AG, Munich (www.mutares.de), acquires medium-sized companies and parts of groups that are being sold during a repositioning and show a clear potential for operational improvement. Mutares actively supports and develops its portfolio companies with own investment and expert teams as well as through acquisitions of strategic add-ons. The aim is to achieve a significant increase in value focusing on sustainable growth of the portfolio company. Mutares AG shares are traded on the Frankfurt Stock Exchange under the symbol “MUX” (ISIN: DE000A2NB650).