The extraordinary general meeting of Studio Babelsberg AG yesterday approved the conclusion of a domination and profit and loss transfer agreement between Studio Babelsberg AG and its majority shareholder, Kino BidCo GmbH. The agreement will become effective upon registration with the commercial register of the Local Court of Potsdam.
The conclusion of the agreement is an important step for the future integration of Studio Babelsberg into Cinespace Studios, a global platform that specializes in the development, management, and operation of studio space and accompanying facilities for the film, television, and digital media production industry. It marks a new era for the studio under new management, allowing Studio Babelsberg AG to leverage resources and expertise to further expand beyond feature films and benefit local German productions and series for TV and streaming.
“The integration with Cinespace Studios will create new opportunities and further develop Studio Babelsberg AG’s business for growth in the long term,“ said Andy Weltman, Co-CEO of Studio Babelsberg AG. “The goal is to continue to develop Studio Babelsberg AG’s current corporate strategy and in particular, to use the market position of the studio’s feature film productions together with Cinespace Studios’ deep global roots in streaming and television. We look forward to this next chapter as we strengthen our relationships with local German productions and continue to be a leading international destination for talent within TV and Film.”
In connection with the domination and profit and loss transfer agreement, the shareholders of Studio Babelsberg AG have the option to sell their shares in Studio Babelsberg AG to Kino BidCo GmbH in exchange for a cash compensation in the amount of EUR 3.65 per share. This value was determined as part of a valuation jointly commissioned by Studio Babelsberg AG and Kino BidCo GmbH in accordance with IDW S1 by the appraiser ValueTrust Financial Advisors Deutschland GmbH. The court-appointed auditor, Ebner Stolz GmbH & Co. KG Wirtschafsprüfungsgesellschaft Steuerberatungsgesellschaft, has confirmed the appropriateness of the aforementioned compensation. The period for acquiring the shares ends two months after the date on which the agreement is registered with the commercial register of the Local Court.of Potsdam. The agreement also provides for an annual compensation payment for shareholders not exercising their option to sell their shares to Kino BidCo GmbH in the amount of EUR 0.23 gross or EUR 0.20 net per share (after deduction of current corporation tax and solidarity surcharge).
The voting results of the extraordinary general meeting and all documents relating to the domination and profit and loss transfer agreement will be available at www.studiobabelsberg.com/IR.