Sparta AG

Business and Financial Review • Oct 1, 2001

News Details

Corporate | 1 October 2001 15:44

Sparta AG english

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– SPARTA AG: Progress in refocusing on core competencies Hamburg, October 1, 2001. Since fall 2000 SPARTA AG (German securities code number WKN 724 520), Hamburg, has continued with its process of refocusing on its core competen-cies, investment in second-tier stocks, public shell company business and corporate finance consulting. In Q3 2001, the Company disposed of its interests in Helvetic Star AG, Berne and SPARTA U.K. Ltd., London. Since the beginning of the restructuring process designed to turn the Company into a holding company, the number of pre-IPO investments has been reduced from 21 to just four interests, while the number of investments in listed companies has been brought down from 37 to twelve in current assets and two strategic investments. At the same time, Deutsche Balaton AG, one of SPARTA AG’s strategic investments, has been conducting sales negotiations for the disposal of its financial services business in order to con-centrate on its core businesses of corporate investments and private equity. The company’s proprietary trading business will be handled by Birkert & Fleckenstein AG, a Deutsche Balaton AG investee that has the resources to support own trading. SPARTA AG has reduced its bank liabilities from EUR 23.4 million (as at June 30, 2001) to EUR 20.1 million as at September 30, 2001. This means that the Company was able to make a further repayment of EUR 3.3 million in Q3. The sale of two interests with a combined value of more than EUR 5 million has been delayed. The upshot of this is that the reduction of bank liabilities to EUR 15.4 million, originally scheduled for Q3, has also been postponed. However, the Company is still confident of meeting this target in the near future. In view of the reduction in equity capital as of June 30, 2001, the Company is planning to further reduce bank liabilities to EUR 10 million by March 31, 2002 by selling off interests and using cash inflows generated by its operating business. SPARTA AG’s solvency is assured thanks to its day-to-day corporate finance business, such as the acquisition of KHD Humboldt Wedag AG by FAHR AG, which brought in EUR 1 million in commission for SPARTA, and by the disposal of equity interests. What is more, owing to its low operating costs, SPARTA AG can use its cash and cash equivalents flexibly. SPARTA AG’s Managing Board feels that SPARTA’s shares are substantially undervalued. Even taking the uncertainty on the financial markets since the horrific events of September 11 and the maximum valuation of equity investments at current share prices into consideration, the NAV is still well above EUR 1. SPARTA AG is continuing to expect forecasts net income for fiscal 2001 before adjustments for risk provisions to be slightly positive. The Managing Board SPARTA AG is a financial holding company comprising the Corporate Finance and Value In-vestments business units as well as investments in second-tier stocks listed in Germany and Switzerland. SPARTA has also established itself as a market leader in Germany for the acquisition and restructuring of listed public shell companies. SPARTA is a major shareholder in the listed companies Deutsche Balaton AG (42.38%) and pre-IPO AG (53.6%) as well as in the unlisted company FALKENSTEIN Nebenwerte AG (72,5%). Investor & Public Relations Dirk Hasselbring SPARTA AG Am Sandtorkai 75 20457 Hamburg Germany Tel.: +49 (0) 40 / 37 41 10 24 Fax: +49 (0) 40 / 37 41 10 10 http://www.sparta.de IR@sparta.de end of message, (c)DGAP 01.10.2001