DWS Group GmbH & Co. KGaA
DWS Group SE: Deutsche Bank confirms IPO plans for DWS
DGAP-News: DWS Group SE / Key word(s): IPO NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN.
DWS[3], together with Deutsche Bank today announces its intention to proceed with the planned Initial Public Offering (“IPO”) on the regulated market of the Frankfurt Stock Exchange (Prime Standard) in the earliest available window, subject to market conditions. The planned IPO is expected to consist purely of the sale of existing shares indirectly held by Deutsche Bank.[4] Leading global asset manager positioned for the future With approximately EUR 700 billion of Assets under Management[5] and a workforce present in 22 countries worldwide, DWS is one of the world’s leading asset managers. DWS has strong investment capabilities and solutions across active, passive and alternative investments. DWS manages EUR 513 billion in active assets, EUR 71 billion in alternatives, and EUR 115 billion in passive, with its well-known Xtrackers brand, which is the second largest ETF provider in Europe.[6] DWS is one of the top five asset managers in Europe[7] and commands a leading position in Germany where DWS has a 26.3 percent market share within the retail segment.[8] DWS is well positioned to capture the continental European growth opportunity of client demand shifting from savings products into investment products and MiFID II opening up new distribution channels. DWS’s client mix is well balanced across Europe, the U.S. and Asia, and across retail and institutional channels. The Deutsche Bank distribution channel contributes twelve percent of current Assets under Management[9], and DWS has entered into a new long-term distribution agreement with Deutsche Bank governing the future distribution of DWS’s products. With about 900 investment professionals across the investment platform globally, DWS has a proven track record of delivering a strong and consistent investment performance. This has resulted in a 74 percent benchmark outperformance ratio of Assets under Management on a 3-year basis[10] across all actively invested asset classes in 2017. Client coverage and investment solutions are backed by DWS’s strong research competencies and a scalable operating platform. This includes digital capabilities across robo-advisory, digital distribution and big data to further drive growth and cost efficiency. IPO to accelerate future growth The planned IPO will enhance the external profile of DWS through greater visibility and brand recognition, supporting the distribution of its products. Furthermore, by gaining autonomy, DWS will have a new compensation framework that better aligns remuneration to the needs and performance of the asset management business and that will provide DWS with increased capacity to attract and retain talent. In addition, the IPO provides the company with greater operational flexibility to control costs as well as enabling it to capture both future growth opportunities and select bolt-on acquisitions. Nicolas Moreau, Chief Executive Officer of DWS, said: “DWS has excellent products and investment solutions that are positioned to meet current and future client needs. We have a wide distribution reach across retail and institutional channels, as well as across geographies, to drive flows. We have a strong and scalable operating platform, and see early successes in our digital strategy. We are convinced that the planned IPO will act as a catalyst to support our strategy and deliver shareholder value.” Financial targets DWS’s diversified business with higher margin products positioned for growth provides resilience to future margin compression and supports revenue growth as well as profitability. Furthermore, the business has a robust and scalable operating platform, with further room to optimize and increase efficiency. This supports DWS’s financial targets of net inflows of 3-5 percent of opening Assets under Management p.a. and a management fee margin greater than or equal to 30 bps in the medium term. Additionally, the company aims to reduce the adjusted Cost Income Ratio to less than 65 percent in the medium term. DWS plans to distribute 65-75 percent of its reported net income as dividend. Claire Peel, Chief Financial Officer of DWS, said: “We are highly committed to generating attractive returns for all shareholders through revenue growth, cost discipline and an attractive dividend distribution. Our medium term financial targets underpin our strong earnings and dividend growth potential.” Deutsche Bank to remain strong distribution partner After the separation, Deutsche Bank will remain an important long-term distribution partner for DWS. A 10-year distribution agreement with Deutsche Bank, including Postbank, will continue to provide access to its attractive retail and private banking client base, while the further diversification of the DWS product range will enhance this relationship going forward. DWS and Deutsche Bank have also entered into a Master Service Agreement at arm’s length, which covers certain administrative services. DWS will operate in the form of a KGaA (Kommanditgesellschaft auf Aktien) legal structure. The Supervisory Board will comprise twelve members and is expected to include five independent members, four employee representatives and three Deutsche Bank representatives. Karl von Rohr, Chief Administrative Officer of Deutsche Bank, is designated to become Chairman of the Supervisory Board of DWS. Deutsche Bank is acting as Sole Global Coordinator and Bookrunner in the planned transaction. Barclays, Citi, Credit Suisse, BNP Paribas, ING, Morgan Stanley, UBS and UniCredit are acting as Joint Bookrunners. Commerzbank, Daiwa, Banca IMI, Nordea and Santander have been appointed as Co-Lead Managers. For further information please contact: Media Relations Investor Relations Adib Sisani Oliver Flade Nick Bone Jana Zubatenko Important note Subject to certain exceptions, 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. This announcement is only being distributed to and is only directed at (i) persons who are outside the European Economic Area or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”). The shares are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such shares will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. In any EEA Member State other than Germany and Luxembourg that has implemented the Prospectus Directive, this announcement is only addressed to and is only directed at “qualified investors” in that Member State within the meaning of Article 2(1)(e) of the Prospectus Directive. This ITF announcement is not a prospectus. Investors should not purchase or subscribe for any shares referred to in this document except on the basis of information in the prospectus to be issued by the company in connection with the offering of such shares. Copies of the prospectus will, following approval of the German Financial Supervisory Authority (BaFin) and publication, be available free of charge from the issuer or on www.dws.com. This communication contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of DWS. Forward-looking statements should not be construed as a promise of future results and developments and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those described in such statements. DWS does not assume any obligations to update any forward-looking statements. Each of Deutsche Bank AG, DWS, the Joint Bookrunners and the Co-Lead Managers and their respective affiliates expressly disclaims any obligation or undertaking to update, review or revise any forward looking statement contained in this announcement whether as a result of new information, future developments or otherwise. The Sole Global Coordinator and Bookrunner, the Joint Bookrunners and the Co-Lead Managers, some or all of which are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, are acting exclusively for Deutsche Bank AG, DB Beteiligungs Holding GmbH and DWS and no-one else in connection with the planned IPO. They will not regard any other person as their respective clients in relation to the planned IPO and will not be responsible to anyone other than Deutsche Bank AG, DB Beteiligungs Holding GmbH and DWS for providing the protections afforded to their respective clients, nor for providing advice in relation to the planned IPO, the contents of this announcement or any transaction, arrangement or other matter referred to herein. In connection with the planned IPO of the shares, the Sole Global Coordinator and Bookrunner, the Joint Bookrunners, the Co-Lead Managers and any of their affiliates, may take up a portion of the shares in the planned IPO as a principal position and in that capacity may retain, purchase, sell, offer to sell for their own accounts such shares and other securities of DWS or related investments in connection with the IPO or otherwise. Accordingly, references in the prospectus, once published, to the shares being offered, acquired, placed or otherwise dealt in should be read as including any issue or offer to, or acquisition, placing or dealing by, the Sole Global Coordinator and Bookrunner, the Joint Bookrunners, Co-Lead Managers and any of their affiliates acting in such capacity. In addition the Sole Global Coordinator and Bookrunner, the Joint Bookrunners, Co-Lead Managers and any of their affiliates may enter into financing arrangements (including swaps or contracts for differences) with investors in connection with which the Sole Global Coordinator and Bookrunner, the Joint Bookrunners, Co-Lead Managers and any of their affiliates may from time to time acquire, hold or dispose of shares. The Sole Global Coordinator and Bookrunner, the Joint Bookrunners and Co-Lead Managers do not intend to disclose the extent of any such investment or transactions otherwise than in accordance with any legal or regulatory obligations to do so. None of the Sole Global Coordinator and Bookrunner, the Joint Bookrunners or the Co-Lead Managers or any of their respective directors, officers, employees, advisers or agents accepts any responsibility or liability whatsoever for or makes any representation or warranty, express or implied, as to the truth, accuracy or completeness of the information in this announcement (or whether any information has been omitted from the announcement) or any other information relating to DWS, its subsidiaries or associated companies, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of this announcement or its contents or otherwise arising in connection therewith. MiFID II For the avoidance of doubt, the Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the shares. Each distributor is responsible for undertaking its own target market assessment in respect of the shares and determining appropriate distribution channels.
26.02.2018 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |