Berlusconi family’s MFE-MediaForEurope increases takeover offer for ProSiebenSat.1
European media group MFE-MediaForEurope, which is controlled by the family of former Italian prime minister Silvio Berlusconi, has raised its takeover offer for Germany’s ProSiebenSat.1.
Bert Habets
ProSiebenSat.1/Amelie Niederbuchner
MFE has increased its offer from 0.4 to 1.3 MFE A shares per ProSiebenSat.1 share, with the cash component of the offer remaining at €4.48 (US$5.23) per share.
Based on the closing price per MFE A share on the Euronext Milan Stock Exchange on July 25, the increased consideration has an implied value of €8.15 per ProSiebenSat.1 share, valuing the company at around €2.05bn.
This represents a premium of approximately 15.8% to the Xetra closing price per ProSiebenSat.1 share on July 25 and 24.8% to the Xetra closing price per ProSiebenSat.1 share on March 26, the day before MFE launched its original offer.
MFE currently holds a stake of just over 30% in ProSiebenSat.1. It already owns 100% of Italy’s biggest broadcaster, Mediaset, and its Spanish counterpart, Mediaset España, which operates commercial network Telecinco.
The acquisition of ProSiebenSat.1 would mean MFE would become the third largest commercial TV company in Europe, behind Bertelsmann-owned RTL and ITV in the UK. MFE’s ambition is to build a pan-European broadcaster that can compete with US streamers such as Netflix.
ProSiebenSat.1 Media’s CEO Bert Habets said: “We welcome the announced increase of the offer consideration, which underscores MFE’s long-term investment and continued commitment to ProSiebenSat.1. We will thoroughly assess the increased offer as well as value creation potentials mentioned in the press release of MFE.
“We support the co-operations across the media industry and a pan-European project, working closely together also with MFE, and look forward to continuing joint discussions.”
MFE’s offer coincides with a competing partial acquisition offer for ProSiebenSat.1 from Czech investment group PPF, which offered €7 per share in cash. ProSiebenSat.1 has until August 13 to accept either offer.
MFE’s CEO Pier Silvio Berlusconi, the son of the late prime minister, said: “We have decided to increase our offer for ProSiebenSat.1. This is not because the initial bid was inadequate, but because, as the leading shareholders, we have supported this industrial project for years.
“Our proposal is industrial, not financial. Rather than seeking total control, we are looking for the flexibility to provide clear direction based on a shared vision. What is needed is a push to build what is still lacking: a strong, locally rooted European group of sufficient size to compete globally. This would allow us to combine markets, strengthen the editorial offering and generate new value for viewers and investors alike.
“The advantages are clear: in terms of costs, technology and, above all, revenue, all the while respecting editorial autonomy and national identities. In the countries where it already operates – Italy and Spain – MFE has always upheld its founding values: business ethics, pluralism, freedom of information, employment protection. It will continue to uphold these values at all times and everywhere.
“We are very confident in our plan. It is based on practical actions and careful assessments, of both revenues and costs. If there are better alternatives, we are ready to hear them. But to date, ours is the only concrete project for an independent, credible and competitive European broadcaster.”
