• Stella loan to be settled in shares of Highlight Communications AG; the remaining 16.75 million shares will be released
  • EUR 65 million corporate bond expiring in April 2018 in preparation for refinancing
  • Management Board and Supervisory Board target a short-term pacification of the legal disputes in Germany and Switzerland

With the approval of the Supervisory Board, Constantin Medien AG and Stella Finanz AG today agreed on the terms of the restitution of a loan with a nominal value of EUR 12.25 million and CHF 26.00 million granted by Stella Finanz AG as well as the termination of the legal disputes between both companies. The loan including all accrued interests will be settled in 8 million shares in Highlight Communications AG which had been pledged to Stella Finanz AG. In return, Stella Finanz AG will release the remaining pledged 16.75 million shares, so that overall 20.6 million shares in Highlight Communications AG are at the free disposal of Constantin Medien AG. As a result of the execution of the agreement with Stella Finanz AG the shareholding in Highlight Communications AG will be reduced to approx. 43.6 percent (or approx. 32.7 percent taking into account the resolved capital increase at Highlight Communications AG which has not yet been registered in the commercial register).

The shareholding in Highlight Communications AG will be deconsolidated, irrespective of the above. The main consequences of the deconsolidation have already been described in the 2016 annual report of Constantin Medien AG.

The Management Board, together with a renowned German financial institution and several investors, is preparing a complete refinancing of the EUR 65 million corporate bond which will expire in April 2018. The Management Board is expecting to finalize the refinancing at more favorable terms by the end of the year.

For the benefit of the Company, the Management Board and the Supervisory Board target a short-term pacification of the current legal disputes in Germany and Switzerland to relieve the Company, both operationally and financially, and to entirely re-concentrate the resources on focusing the operational business activities.

Olaf Schröder, CEO of Constantin Medien AG: 'The agreement now reached is a first important step in securing the financing structure of our Group. Currently, we are working at high pressure on the refinancing of the corporate bond to be able to entirely direct our focus towards the operational activities and the strategic further development of our Company.'

By current status, the Company will publish the interim financial report 2017 until September 30, 2017. The interim financial report 2017 will already take into account the deconsolidation of the shareholding in Highlight Communications AG.

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Constantin Medien AG published this content on 20 September 2017 and is solely responsible for the information contained herein.
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