German broadcaster to sell assets but opposes pressure for breakup
Shareholders of German broadcaster to vote on offer by MFE-MediaForEurope on April 30
11 April 2024 - 15:18
byReuters
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Berlin — German broadcaster ProSiebenSat.1 said it plans to sell two e-commerce businesses, a key demand from top investor MFE, but reiterated an appeal to shareholders to oppose a complete break-up.
MFE, which holds almost 30% of ProSieben’s shares, wants the company to shed all its e-commerce and dating businesses and to focus on television, in a split that could eventually lead to a buyout approach for the German group’s TV business.
ProSieben shares traded 4.9% higher at €7.78 at 12.49pm GMT.
ProSieben shareholders will vote on MFE’s plan at the German company’s AGM on April 30. Amber Capital said it would back the strategy shift proposed by MFE.
ProSieben’s management has fiercely opposed MFE’s break-up proposals, which CEO Bert Habets said “would restrict our options and create no value for all shareholders”.
In a statement published online, Habets added: “We have improved the profitability of our e-commerce businesses and initiated a sale process with banks for two of our largest assets, Verivox and Flaconi, to maximise value.”
Flaconi is an online retailer of beauty products and Verivox is a price comparison website.
MFE declined to comment directly on the planned sale of the businesses, referring instead to its previous statements.
The media company said this week ProSiebenSat.1 management could continue to try to sell the noncore business and take the dating business public.
ProSieben said it was notified on Wednesday of a statement from MFE.
“Depending on market conditions, the share price and possible strategic options and subject to regulatory approvals, it is intended to acquire further voting rights in ProSiebenSat.1 Media SE within the next 12 months by purchase or otherwise,” MFE said in the statement.
The DWS lobby group, which represents private shareholders, urged investors to oppose MFE’s plans at the AGM, saying the proposals would be detrimental to ProSieben.
“It looks as if the major investor MFE wants to create a kind of bad bank in which companies are brought in order to sell them quickly,” DWS vice-president Daniela Bergdolt said.
“However, this approach will depress the prices of the investments and destroy value for all shareholders.”
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
German broadcaster to sell assets but opposes pressure for breakup
Shareholders of German broadcaster to vote on offer by MFE-MediaForEurope on April 30
Berlin — German broadcaster ProSiebenSat.1 said it plans to sell two e-commerce businesses, a key demand from top investor MFE, but reiterated an appeal to shareholders to oppose a complete break-up.
MFE, which holds almost 30% of ProSieben’s shares, wants the company to shed all its e-commerce and dating businesses and to focus on television, in a split that could eventually lead to a buyout approach for the German group’s TV business.
ProSieben shares traded 4.9% higher at €7.78 at 12.49pm GMT.
ProSieben shareholders will vote on MFE’s plan at the German company’s AGM on April 30. Amber Capital said it would back the strategy shift proposed by MFE.
ProSieben’s management has fiercely opposed MFE’s break-up proposals, which CEO Bert Habets said “would restrict our options and create no value for all shareholders”.
In a statement published online, Habets added: “We have improved the profitability of our e-commerce businesses and initiated a sale process with banks for two of our largest assets, Verivox and Flaconi, to maximise value.”
Flaconi is an online retailer of beauty products and Verivox is a price comparison website.
MFE declined to comment directly on the planned sale of the businesses, referring instead to its previous statements.
The media company said this week ProSiebenSat.1 management could continue to try to sell the noncore business and take the dating business public.
ProSieben said it was notified on Wednesday of a statement from MFE.
“Depending on market conditions, the share price and possible strategic options and subject to regulatory approvals, it is intended to acquire further voting rights in ProSiebenSat.1 Media SE within the next 12 months by purchase or otherwise,” MFE said in the statement.
The DWS lobby group, which represents private shareholders, urged investors to oppose MFE’s plans at the AGM, saying the proposals would be detrimental to ProSieben.
“It looks as if the major investor MFE wants to create a kind of bad bank in which companies are brought in order to sell them quickly,” DWS vice-president Daniela Bergdolt said.
“However, this approach will depress the prices of the investments and destroy value for all shareholders.”
Reuters
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