RTL stake nets Bertelsmann $1.8bn

German media conglomerate Bertelsmann has raised €1.4bn (US$1.8bn) from a float of a 17% share holding in European broadcast giant RTL Group.

Bertelsmann yesterday set the price for the 23.2 million shares at €55.50 (US$72.60), at the low end of the €54-€62 range it originally said it expected when the sale was announced earlier this year.

Today is the first day of trading for the shares on the Frankfurt stock market and the sale reduces Bertelsmann’s stake in FremantleMedia parent RTL from 92.3% to 75%. The shares were trading 2.8% down at press time, available at €54.92.

The move will fund Bertelsmann’s global expansion strategy that has already included a £2.5bn (US$4bn) merger between its Random House publishing business and that of Pearson-owned rival Penguin Group, as well as making cash available for a potential FremantleMedia buying spree.