Is Lenovo taking the Aldi cult brand Medion off the stock exchange?
Computer manufacturer Lenovo has increased its stake in the Aldi cult brand Medion to around 98 percent. This increases the likelihood that the Chinese company will squeeze out the other shareholders and take Medion off the stock exchange. The backgrounds.
The Chinese electronics manufacturer Lenovo has increased its stake in the Aldi cult brand Medion. The company announced this in a Thursday, July 13, 2023 Ad Hoc Notice with. According to this, Lenovo Germany Holding GmbH will hold 98.21 percent of the voting rights after the purchase has been successfully completed. Previously it was already 86.3 percent.
According to Medion, the acquisition of the other shares took place within the tender period, which ended on July 12, 2023. The share of the Aldi cult brand then buckled by around two percent.
Lenovo is increasing shares in Aldi’s cult brand Medion
Rumors had already been circulating that Lenovo was aiming for a complete takeover of Medion. The Chinese electronics manufacturer acquired a stake in the German company back in 2011 when it bought the shares from Medion founder and managing director Gerd Brachmann.
In addition, Lenovo acquired additional shares over the counter, so that the company finally came to 86.3 percent of the voting shares. The public takeover bid at the time was EUR 13 per share. However, an additional cash compensation offer to acquire further securities at this price met with little interest from the other main shareholders. The amount was too small for them.
Medion share: What is a squeeze out?
Numerous small shareholders and the US investor Paul Singer, who now held around ten percent of Medion AG with his affiliated companies, had the cash compensation checked in court. After years of dispute, the shareholders finally lost in April 2023 in the second instance before the Düsseldorf Higher Regional Court. The two-month tender period began when the judgment was published.
With 98.21 percent of the shares, Lenovo now has the opportunity to force the remaining minority shareholders out of the company by means of a squeeze-out and to unite all shares. For such a procedure, the majority shareholder in Germany must hold at least 90 percent of the shares. The aim is to gain sole decision-making power.
In the course of the increase, such a scenario is now becoming more and more likely. Lenovo would also take Medion off the stock exchange in this context. However, it is still unclear whether it will come to that. Because Lenovo has not yet made an official statement.
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