SGT German Private Equity Announces Strategic Shift Toward Artificial Intelligence

SGT German Private Equity, henceforth known as 'German AI Group', has declared a strategic redirection towards artificial intelligence (AI), signifying a major shift from its previous focus. This move is motivated by the transformative potential of AI, likened to that of the internet and smartphones, promising significantly better earnings prospects. The Frankfurt-based holding is positioning itself to leverage this technology for its shareholders, tapping into the wealth creation potential of the upcoming innovation cycle. This development follows the weak profitability of its subsidiary, SGT Capital Pte. Ltd., and the challenging market conditions encountered by the traditional private equity sector recently.

The decision coincides with the discontinuation of SGTPTE's operating activities due to the prolonged delay in closing a private equity transaction planned for May 2023. As part of this strategic overhaul, SGF has repurchased 36.7 million SGF-Shares from its major shareholder, significantly reducing the number of shares outstanding and increasing the free float to 75%. This maneuver aims to condense the value per outstanding share, enhancing shareholder value amidst operational challenges and the marked-down revenue expectations for the 2023 financial year. The company anticipates an operating loss, deviating from the previously forecasted net profit, attributed to the unfulfilled PE transaction and necessary markdowns in its portfolio.