Private equity company Deutsche Beteiligungsachieved a pre-tax profit of E43m in the financial year 1999-2000, outstripping last year's results by E0.5m.
The private equity company’s net income was E32.1m and it will recommend paying dividends of E1.80 per share to shareholders. Last year that figure was E1.79. Shareholders who are eligible for a corporate tax credit will receive E2.57 per share compared to E2.56 last year.
Capital gains totaled E56.8m from the realisation of six investments. DBG Osteuropa-Holding GmbH, a private equity fund managed by Deutsche Beteiligungs, profitably exited its investment in the largest Czech internet provider, Czech On Line, in May 2000. This deal is the largest internet transaction to date in Eastern Europe.
Deutsche Beteiligungs and its managed funds made E153m of new investments. In Germany, the company acquired shares in Reinhold & Mahla AG, Europe's largest supplier of industrial insulations, and the automotive supplier Edscha AG. Its portfolio grew to E324m invested in 50 companies. Including managed third-party funds, the firm now looks after a total of E491m invested in 61 companies.
The company will use E58m from a capital increase in July 2000 to finance further growth. It will continue to focus on majority acquisitions in management buy-outs of strongly diversified companies. Another core business activity is bridge financing through investments in the pre-IPO stage. The private equity firm anticipates further growth through the new German tax amendment in 2002 which will exempt capital gains from domestic divestments from taxation.