US activist investor Elliott has called on German classifieds group Scout24 to sell its car listings business and carry out a “more ambitious” share buyback programme to boost returns to investors.
In a statement, Elliott said: “Elliott Advisors (UK) Limited, which advises funds that collectively hold a long economic interest representing in excess of 7% of the share capital of Scout24 A.G., today released a letter outlining its perspectives on the significant value-creation potential at Scout24.
“Elliott believes there are concrete and prudent steps that the Management and Supervisory Boards of Scout24 should be taking that could drive the share price of Scout24 to more than €65 per share.
“A more ambitious buyback programme, with leverage levels closer to those recommended by the boards just a few months ago, as well as a comprehensive strategic review focused on achieving a full separation of the AutoScout24 business would create meaningful value for all stakeholders.
“Elliott looks forward to continuing to engage with the Boards of Scout24 to help deliver this outcome.”