MFE-MediaForEurope, the pan-European TV group managed by the household of former Italian Prime Minister Silvio Berlusconi, has upped its provide for German broadcaster ProSiebenSat.1, boosting the share element of its voluntary public takeover bid whereas sustaining the money portion.
The revised provide, introduced Monday, raises the inventory element from 0.4 to 1.3 MFE A shares per ProSiebenSat.1 share, with the money aspect remaining at €4.48 ($5.25) a share.
Based mostly on the July 25 closing worth of MFE A shares on the Euronext Milan change, the up to date provide implies a price of €8.15 ($9.55) per ProSiebenSat.1 share. That represents a 15.8 % premium over ProSieben’s Xetra closing worth of €7.04 on the identical day, and a 24.8 % premium in comparison with its March 26 closing worth of €6.53, the day earlier than MFE launched its authentic bid.
The competing partial acquisition provide from Czech funding group PPF IM Restricted stays unchanged at €7.00 ($8.20) per share in money.
MFE already holds round 30 % of ProSiebenSat.1, and has framed its takeover as a strategic step towards constructing a pan-European media firm. In a latest assertion, CEO Pier Silvio Berlusconi emphasised that the revised provide was not a mirrored image of the inadequacy of the unique bid however underscored MFE’s continued assist for the German broadcaster and the long-term potential of a consolidated European media group.
Germany’s tradition minister stated on Saturday he had invited Italian media magnate Pier Silvio Berlusconi to a gathering to debate his firm’s bid to purchase TV group ProSiebenSat.1, including the German agency’s journalistic independence should be preserved.
“A change of possession at a media group like ProSiebenSat.1 can be way over enterprise as regular. The potential takeover would affect the media energy construction of our nation,” Minister of State for Tradition Wolfram Weimer
ProSiebenSat.1 CEO Bert Habets welcomed the elevated provide, calling it a sign of MFE’s dedication to the corporate. “We’ll completely assess the elevated provide in addition to worth creation potentials talked about within the press launch of MFE,” Habets stated. He reiterated the corporate’s openness to pan-European cooperation and confirmed that ProSiebenSat.1’s govt and supervisory boards will problem a proper response after reviewing the amended provide documentation.
Germany’s tradition minister Wolfram Weimer has invited Berlusconi to Berlin for talks following the summer time break to debate the implications of the potential takeover. “A change in possession should not result in a restriction of journalistic independence,” Weimar informed Reuters. “Media energy isn’t impartial – whoever buys it bears political accountability.”
MFE already controls Mediaset, Italy’s largest TV broadcaster, and Spain’s No. 1 industrial community Telecinco. With the addition of Pro7, MFE would develop into the third-largest industrial TV firm in Europe, behind RTL (owned by German media big Bertelsmann) and the U.Okay.’s ITV.
In distinction with different legacy broadcasters, that are pivoting to streaming to try to compete with world giants like Amazon and Netflix, MFE has doubled down on the free-to-air industrial TV mannequin. Betting that in-country consolidation will probably be blocked by nationwide regulators — a number of makes an attempt to merge the No. 1 and No. 2 industrial networks in particular person territories have certainly been shot down by anti-trust authorities — MFE has moved to realize scale by combining main networks in several nations.
MFE estimates that the consolidation of ProSiebenSat.1’s operations with its Italian and Spanish companies might generate as much as €419 million ($491 million) in extra annual EBIT by the fourth 12 months of implimentaiton, pushed primarily by promoting, expertise, and information synergies. The group says it might want to make a one-off funding of round €145 million ($170 million) to understand these efficiencies.
The acceptance interval for each the MFE and PPF presents is scheduled to shut on August 13, except prolonged underneath German takeover regulation.