MediaForEurope (MFE), the Berlusconi family’s Italy-based group, will finally become the majority shareholder in Germany’s ProSiebenSat.1 Media.
The long battle for control of the broadcaster and content group is drawing to an end following the decision of key ProSiebenSat.1 shareholder PPF IM to sell its entire 15.7% stake to MFE.
In effect, this gives MFE around 60% of the stock and a dominant position in the boardroom. However, that still leaves MFE short of the 75% it needs to effectively take full control.
ProSieben ranks alongside the Bertelsmann-owned RTL as Germany’s largest commercial broadcast groups. It operates a production wing, Seven.One Studios, which counts the likes of Married at First Sight and The Hunt in its library, and owns several other non-broadcasting assets.
PPF and MFE had both made competing offers to shareholders, with the Berlusconis securing more than 43% of the business earlier this month. PPF’s offer expired on August 21, and the Czech Republic-based company has now decided to sell its entire stock to MFE.
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PPF said that, though MFE had failed to secure the majority it wants to combine its Italian and Spanish operations with ProSieben, the failure to attract more shareholders to its own offer meant it would effectively lose at every shareholder meeting. It added that the possibility of “engaging with MFE on equal terms” was no longer possible.
“Nevertheless, it should be noted that PPF has acted as a catalyst for a meaningful improvement in MFE’s offer terms, which significantly raised ProSiebenSat.1’s valuation and created value for all shareholders,” the company added in a statement.
That is true, as PPF’s offer of around €7 ($8.16) a share back in May was considerably stronger than MFE’s first low-ball try. This led to an improved bid from the Berlusconis of about €8.15 each in total, including MFE stock.
Following publication of PPF’s statement yesterday, MFE has remained quiet. However, it is still in an extended voluntary takeover offer period until September 1. This means shareholders can cash in until that point.
MFE is seeking at least 75% of the voting shares, which would give it the right to issue binding instructions to ProSieben’s board and to consolidate the German firm’s earnings into its own. This would go a long way to creating the European giant with massive TV advertising pull that MFE says is necessary to combat the likes of Netflix and Amazon.
In recent days, there has been pushback against MFE ownership from German press association DJV, which has warned that the Berlusconi family could impose “right-wing populist agenda” on the German media giant. Germany’s Culture Minister Wolfram Weimer has warned ProSieben must stay editorially independent has been seeking a meeting with MFE CEO Pier Silvio Berlusconi to discuss the future. Berlusconi’s late father, Silvio Berlusconi, took an openly populist approach to his Italian broadcasting business, Mediaset, which he ran for several decades.