DGAP-Adhoc: DEAG Deutsche Entertainment Aktiengesellschaft: DEAG Classics AG increases shareholding in Raymond Gubbay Ltd. (RGL) to 100%

DEAG Deutsche Entertainment Aktiengesellschaft / Miscellaneous

21.06.2010 08:26 

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

---------------------------------------------------------------------------

DEAG Classics AG increases shareholding in Raymond Gubbay Ltd. (RGL) to
100%

* Earnings per share rise as a result of lower minority shares
* Founder and top management of RGL with long-term contract extension
* International activities in the classics business line pushed together
with Sony Music Classical

Berlin, June 21, 2010: DEAG Classics AG, a subsidiary of Deutsche
Entertainment AG (Securities Identification Number WKN A0Z23G) and Sony
Music Classical, has increased its shareholding in the leading British
classical music promoter, Raymond Gubbay Ltd. (RGL), from an existing 75.1
percent to now 100 percent of the shares. The shares were acquired from
company founder and Chairman Raymond Gubbay CBE, who founded RGL in 1966, 
and Managing Director Anthony Findlay. The parties have agreed not to
disclose the purchase price which is being paid in cash. The two British
senior managers of RGL have at the same time extended their contracts as
Chairman and Managing Directors until 2014 and 2018, respectively, thereby
cementing their long-term relationship with RGL.

Since the acquisition of a shareholding by DEAG in April 2008, Raymond
Gubbay Ltd. has turned out to be a major strategic and economic pillar
within the DEAG Group and also in fiscal 2009 it made a significant
contribution to sales revenues and profits through a varied programme of
concerts, opera, ballet and dance including more than 60 successful,
sold-out performances at the Royal Albert Hall. To that end 2010/11 year is
already shaping up to show significant growth top and bottom line on prior
year, even given tougher market and economic conditions. RGL has also been
successful in developing new shows and formats. There are many signs
indicating a continuation of the positive development during the current
fiscal year and beyond. RGL will continue to grow business going forward
both with existing brands and also with new formats and acts that will be
promoted. This increase in shareholding will reduce the profit shares of
third parties within the DEAG Group. The earnings per share of DEAG will
already directly increase in fiscal 2010 as a result of the transaction.

The full acquisition of RGL constitutes yet another significant milestone
in the international expansion strategy of DEAG in the classical business
line. In this connection a separate classics subsidiary, 'The Classical
Company', was already set up in Switzerland with the Ringier publishing
house as a partner in late 2009. With Sony Music Classical as a
co-shareholder in DEAG Classics, DEAG taps into further international
regions in the classical business line through concerts with top artists in
fiscal 2010. Following the publication of the new album by Jessye Norman,
ROOTS (Sony Classical releases this DEAG Music production in France, Spain
and in the USA in June), many concerts will be staged in France, Spain and
Austria. For 2011, appearances are already agreed for Switzerland and
Japan. In England, Austria, Germany and Switzerland there will be concerts
and tours during the remainder of this year with the Berlin Philharmonics,
Josef Bulva, Classical Spectacular, Montserrat Caballé, Joyce DiDonato, the
English National Ballet, David Garrett, Elina Garanca, Katherine Jenkins,
Nigel Kennedy, Lang Lang, Kent Nagano, The Philharmonics,  the Royal
Philharmonic Orchestra and the Vienna Boys' Choir and others.


21.06.2010 08:26 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv at |[![CDATA[|[a href="http://www.dgap-medientreff.de"|]www.dgap-medientreff.de|[/a|]]]|] and |[![CDATA[|[a href="http://www.dgap.de"|]www.dgap.de|[/a|]]]|]

---------------------------------------------------------------------------
 
Language:     English
Company:      DEAG Deutsche Entertainment Aktiengesellschaft
              Potsdamer Straße 58
              10785 Berlin
              Deutschland
Phone:        +49 (0)30 / 810 75-0
Fax:          +49 (0)30 / 810 75-519
E-mail:       info@deag.de
Internet:     www.deag.de
ISIN:         DE000A0Z23G6
WKN:          A0Z23G
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, München, Düsseldorf, Stuttgart, Hamburg
 
End of News                                     DGAP News-Service
 
---------------------------------------------------------------------------