Czech investment group PPF IM Ltd has announced a partial offer to ProSiebenSat shareholders.
The company wants to increase its holding in the company. Currently the second largest shareholder in the German broadcaster, PPF has a current stake of around 15 per cent. The new offer would take its holding “up to” 29.9 per cent, just beneath the threshold at which an acquisition offer would become compulsory under German law.
PPF will offer shareholders a cash consideration of €7.00 per share, representing a premium of 21 per cent over the implied offer price made last week by Berlusconi-owned Media For Europe (MFE), which has had the company in its sights for several months.
The offer aims to allow the management at ProSiebenSat to “deliver on its existing strategy and drive operational excellence,” while enabling shareholders with an immediate opportunity to monetise their investments free of the risk of ongoing uncertainty, said PPF.
Jiří Šmejc, CEO of PPF Group, said: “We put forward a compelling all-cash offer and intend to take a much more active role in the supervisory board going forward. We hope that this is appealing to shareholders and stakeholders alike and paves the way for unlocking the potential of ProSiebenSat.1.”
Didier Stoessel, chief investment officer of PPF Group, added: “We are a long-term investor and reliable partner to the companies we have invested in. Despite ProSiebenSat.1’s challenges and the turbulent market environment, I believe that the ProSiebenSat.1 management has the right strategy in place, which we fully support. I also believe that there is a general alignment among all stakeholders to divest non-core assets at the right valuation and execute the much-needed digital transformation of the core media segment. With a stronger shareholding and proportionate Supervisory Board representation, we will be in a position to more actively support the ProSiebenSat.1 management with our experience, namely in the digital revitalisation of linear TV business models.”
The executive board at ProSiebenSat is said to welcome the offer, which PPF intends to publish during the acceptance period of the MFE offer, ensuring it qualifies as a competing offer under the German Securities Acquisition and Takeover Act.
PPF has said it is not “directed at acquiring” control of the company.
